Increases to CEO Compensation Might Be Put On Hold For Now at Tian Teck Land Limited (HKG:266)

Key Insights

• Tian Teck Land to hold its Annual General Meeting on 5th of September
• Total pay for CEO KL Cheong includes HK$2.37m salary
• Total compensation is 96% above industry average
• Tian Teck Land's three-year loss to shareholders was 42% while its EPS grew by 54% over the past three years

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Shareholders of Tian Teck Land Limited (HKG:266) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 5th of September. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Tian Teck Land

How Does Total Compensation For KL Cheong Compare With Other Companies In The Industry?

According to our data, Tian Teck Land Limited has a market capitalization of HK$983m, and paid its CEO total annual compensation worth HK$3.2m over the year to March 2025. Notably, that's a decrease of 13% over the year before. We note that the salary portion, which stands at HK$2.37m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Real Estate industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.6m. This suggests that KL Cheong is paid more than the median for the industry. Moreover, KL Cheong also holds HK$96m worth of Tian Teck Land 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 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. Tian Teck Land sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Tian Teck Land Limited's Growth Numbers

Over the past three years, Tian Teck Land Limited has seen its earnings per share (EPS) grow by 54% per year. Its revenue is up 1.2% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Tian Teck Land Limited Been A Good Investment?

With a total shareholder return of -42% over three years, Tian Teck Land Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Tian Teck Land that investors should look into moving forward.

Important note: Tian Teck Land 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.