Here's Why Some Shareholders May Not Be Too Generous With Thing On Enterprise Limited's (HKG:2292) CEO Compensation This Year

Key Insights

• Thing On Enterprise's Annual General Meeting to take place on 25th of April
• CEO Ryan Wong's total compensation includes salary of HK$650.0k
• Total compensation is 63% below industry average
• Over the past three years, Thing On Enterprise's EPS fell by 69% and over the past three years, the total loss to shareholders 34%

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The underwhelming performance at Thing On Enterprise Limited (HKG:2292) recently has probably not pleased shareholders. At the upcoming AGM on 25th of April, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

Check out our latest analysis for Thing On Enterprise

How Does Total Compensation For Ryan Wong Compare With Other Companies In The Industry?

At the time of writing, our data shows that Thing On Enterprise Limited has a market capitalization of HK$432m, and reported total annual CEO compensation of HK$668k for the year to December 2024. This was the same as last year. We note that the salary portion, which stands at HK$650.0k 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 HK$1.8m. In other words, Thing On Enterprise pays its CEO lower than the industry median.

Component	2024	2023	Proportion (2024)
Salary	HK$650k	HK$650k	97%
Other	HK$18k	HK$18k	3%
Total Compensation	HK$668k	HK$668k	100%

On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. Thing On Enterprise has gone down a largely traditional route, paying Ryan Wong a high salary, giving it preference over non-salary benefits. 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 Thing On Enterprise Limited's Growth Numbers

Over the last three years, Thing On Enterprise Limited has shrunk its earnings per share by 69% per year. It achieved revenue growth of 5.5% over the last year.

Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation 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 Thing On Enterprise Limited Been A Good Investment?

The return of -34% over three years would not have pleased Thing On Enterprise Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Ryan receives almost all of their compensation through a salary. 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 it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for Thing On Enterprise that investors should be aware of in a dynamic business environment.

Important note: Thing On Enterprise 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.