Here's Why Desun Real Estate Investment Services Group Co., Ltd.'s (HKG:2270) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• Desun Real Estate Investment Services Group's Annual General Meeting to take place on 20th of June
• CEO Zhicheng Zhang's total compensation includes salary of CN¥1.45m
• Total compensation is similar to the industry average
• Over the past three years, Desun Real Estate Investment Services Group's EPS fell by 6.6% and over the past three years, the total shareholder return was 46%

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

CEO Zhicheng Zhang has done a decent job of delivering relatively good performance at Desun Real Estate Investment Services Group Co., Ltd. (HKG:2270) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 20th of June. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Desun Real Estate Investment Services Group

How Does Total Compensation For Zhicheng Zhang Compare With Other Companies In The Industry?

At the time of writing, our data shows that Desun Real Estate Investment Services Group Co., Ltd. has a market capitalization of HK$955m, and reported total annual CEO compensation of CN¥1.5m for the year to December 2024. Notably, that's a decrease of 9.2% over the year before. We note that the salary portion, which stands at CN¥1.45m constitutes the majority of total compensation received by the CEO.

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 CN¥1.5m. This suggests that Desun Real Estate Investment Services Group remunerates its CEO largely in line with the industry average. Moreover, Zhicheng Zhang also holds HK$35m worth of Desun Real Estate Investment Services Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 82% of total compensation out of all the companies we analyzed, while other remuneration made up 18% of the pie. According to our research, Desun Real Estate Investment Services Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Desun Real Estate Investment Services Group Co., Ltd.'s Growth

Over the last three years, Desun Real Estate Investment Services Group Co., Ltd. has shrunk its earnings per share by 6.6% per year. It achieved revenue growth of 33% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Desun Real Estate Investment Services Group Co., Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Desun Real Estate Investment Services Group Co., Ltd. for providing a total return of 46% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The overall company performance has been commendable, however there are still areas for improvement. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.

So you may want to check if insiders are buying Desun Real Estate Investment Services Group shares with their own money (free access).

Switching gears from Desun Real Estate Investment Services Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.