Here's Why Shareholders Should Examine Deson Development International Holdings Limited's (HKG:262) CEO Compensation Package More Closely

Key Insights

• Deson Development International Holdings to hold its Annual General Meeting on 26th of August
• Salary of HK$4.20m is part of CEO Boen Sien Tjia's total remuneration
• The overall pay is 172% above the industry average
• Deson Development International Holdings' three-year loss to shareholders was 1.5% while its EPS was down 2.3% over the past three years

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The results at Deson Development International Holdings Limited (HKG:262) have been quite disappointing recently and CEO Boen Sien Tjia bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 26th of August. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Deson Development International Holdings

Comparing Deson Development International Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Deson Development International Holdings Limited has a market capitalization of HK$98m, and reported total annual CEO compensation of HK$4.4m for the year to March 2025. This was the same amount the CEO received in the prior year. We note that the salary portion, which stands at HK$4.20m 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$1.6m. Accordingly, our analysis reveals that Deson Development International Holdings Limited pays Boen Sien Tjia north of the industry median. Furthermore, Boen Sien Tjia directly owns HK$44m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 84% of total compensation represents salary, while the remainder of 16% is other remuneration. Deson Development International Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Deson Development International Holdings Limited's Growth Numbers

Deson Development International Holdings Limited has reduced its earnings per share by 2.3% a year over the last three years. In the last year, its revenue is up 5.8%.

A lack of EPS improvement is not good to see. The fairly low revenue growth fails to impress given that the EPS is down. 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 Deson Development International Holdings Limited Been A Good Investment?

Given the total shareholder loss of 1.5% over three years, many shareholders in Deson Development International Holdings Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Boen Sien receives almost all of their compensation through a salary. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a 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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for Deson Development International Holdings you should be aware of, and 1 of them doesn't sit too well with us.

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.