We Discuss Why Pioneer Global Group Limited's (HKG:224) CEO Compensation May Be Closely Reviewed

Key Insights

• Pioneer Global Group's Annual General Meeting to take place on 11th of September
• CEO Kenny Gaw's total compensation includes salary of HK$4.65m
• Total compensation is 217% above industry average
• Over the past three years, Pioneer Global Group's EPS fell by 116% and over the past three years, the total loss to shareholders 26%

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Pioneer Global Group Limited (HKG:224) has not performed well recently and CEO Kenny Gaw will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 11th of September. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Pioneer Global Group

Comparing Pioneer Global Group Limited's CEO Compensation With The Industry

According to our data, Pioneer Global Group Limited has a market capitalization of HK$750m, and paid its CEO total annual compensation worth HK$5.1m over the year to March 2025. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is HK$4.65m, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Real Estate industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.6m. This suggests that Kenny Gaw is paid more than the median for the industry. What's more, Kenny Gaw holds HK$76m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. There isn't a significant difference between Pioneer Global Group and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Pioneer Global Group Limited's Growth

Over the last three years, Pioneer Global Group Limited has shrunk its earnings per share by 116% per year. It saw its revenue drop 11% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Pioneer Global Group Limited Been A Good Investment?

Since shareholders would have lost about 26% over three years, some Pioneer Global Group Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for Pioneer Global Group (1 shouldn't be ignored!) that you should be aware of before investing here.

Important note: Pioneer Global Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.