It's Unlikely That Shareholders Will Increase JY Grandmark Holdings Limited's (HKG:2231) Compensation By Much This Year

Key Insights

• JY Grandmark Holdings will host its Annual General Meeting on 6th of June
• CEO Catherine Zheng's total compensation includes salary of CN¥708.0k
• The total compensation is 72% less than the average for the industry
• JY Grandmark Holdings' EPS declined by 120% over the past three years while total shareholder loss over the past three years was 71%

The disappointing performance at JY Grandmark Holdings Limited (HKG:2231) will make some shareholders rather disheartened. The next AGM coming up on 6th of June will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. The data we gathered below shows that CEO compensation looks acceptable for now.

See our latest analysis for JY Grandmark Holdings

How Does Total Compensation For Catherine Zheng Compare With Other Companies In The Industry?

According to our data, JY Grandmark Holdings Limited has a market capitalization of HK$1.5b, and paid its CEO total annual compensation worth CN¥901k over the year to December 2023. We note that's a decrease of 22% compared to last year. In particular, the salary of CN¥708.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Real Estate industry with market capitalizations ranging between HK$782m and HK$3.1b had a median total CEO compensation of CN¥3.2m. That is to say, Catherine Zheng is paid under the industry median.

Component	2023	2022	Proportion (2023)
Salary	CN¥708k	CN¥921k	79%
Other	CN¥193k	CN¥234k	21%
Total Compensation	CN¥901k	CN¥1.2m	100%

On an industry level, roughly 77% of total compensation represents salary and 23% is other remuneration. Although there is a difference in how total compensation is set, JY Grandmark Holdings more or less reflects the market in terms of setting the salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at JY Grandmark Holdings Limited's Growth Numbers

Over the last three years, JY Grandmark Holdings Limited has shrunk its earnings per share by 120% per year. In the last year, its revenue changed by just 0.03%.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue hardly impresses. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has JY Grandmark Holdings Limited Been A Good Investment?

The return of -71% over three years would not have pleased JY Grandmark Holdings Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for JY Grandmark Holdings that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.