Rykadan Capital Limited's (HKG:2288) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Rykadan Capital to hold its Annual General Meeting on 10th of September
• Salary of HK$12.0m is part of CEO William Chan's total remuneration
• The total compensation is 767% higher than the average for the industry
• Rykadan Capital's three-year loss to shareholders was 75% while its EPS was down 34% over the past three years

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The results at Rykadan Capital Limited (HKG:2288) have been quite disappointing recently and CEO William Chan bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 10th of September. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Rykadan Capital

Comparing Rykadan Capital Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Rykadan Capital Limited has a market capitalization of HK$53m, and reported total annual CEO compensation of HK$14m for the year to March 2025. That's a notable increase of 8.0% on last year. Notably, the salary which is HK$12.0m, 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. Accordingly, our analysis reveals that Rykadan Capital Limited pays William Chan north of the industry median. Moreover, William Chan also holds HK$19m worth of Rykadan Capital stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Although there is a difference in how total compensation is set, Rykadan Capital more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Rykadan Capital Limited's Growth

Over the last three years, Rykadan Capital Limited has shrunk its earnings per share by 34% per year. In the last year, its revenue is down 28%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Rykadan Capital Limited Been A Good Investment?

Few Rykadan Capital Limited shareholders would feel satisfied with the return of -75% over three years. This suggests it would be unwise for the company to pay the CEO too 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 compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Rykadan Capital that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.