It's Unlikely That The CEO Of Top Spring International Holdings Limited (HKG:3688) Will See A Huge Pay Rise This Year

Key Insights

• Top Spring International Holdings will host its Annual General Meeting on 22nd of May
• Salary of HK$1.51m is part of CEO Chun Hong Wong's total remuneration
• The total compensation is similar to the average for the industry
• Top Spring International Holdings' three-year loss to shareholders was 61% while its EPS was down 103% over the past three years

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Shareholders of Top Spring International Holdings Limited (HKG:3688) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also lacking, despite revenue growth. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 22nd of May, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

See our latest analysis for Top Spring International Holdings

Comparing Top Spring International Holdings Limited's CEO Compensation With The Industry

Our data indicates that Top Spring International Holdings Limited has a market capitalization of HK$512m, and total annual CEO compensation was reported as HK$1.5m for the year to December 2024. We note that's a decrease of 48% compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth HK$1.5m.

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. So it looks like Top Spring International Holdings compensates Chun Hong Wong in line with the median for the industry. Furthermore, Chun Hong Wong directly owns HK$152m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	HK$1.5m	HK$2.9m	100%
Other	-	-	-
Total Compensation	HK$1.5m	HK$2.9m	100%

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. At the company level, Top Spring International Holdings pays Chun Hong Wong solely through a salary, preferring to go down a conventional route. 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.

Top Spring International Holdings Limited's Growth

Top Spring International Holdings Limited has reduced its earnings per share by 103% a year over the last three years. In the last year, its revenue is up 43%.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Top Spring International Holdings Limited Been A Good Investment?

Few Top Spring International Holdings Limited shareholders would feel satisfied with the return of -61% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Top Spring International Holdings pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with 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. We did our research and identified 4 warning signs (and 2 which shouldn't be ignored) in Top Spring International Holdings we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.