Shareholders May Be Wary Of Increasing Great Eagle Holdings Limited's (HKG:41) CEO Compensation Package

Key Insights

• Great Eagle Holdings to hold its Annual General Meeting on 14th of May
• Total pay for CEO Ka Shui Lo includes HK$15.9m salary
• The total compensation is 314% higher than the average for the industry
• Great Eagle Holdings' EPS declined by 70% over the past three years while total shareholder loss over the past three years was 9.9%

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Great Eagle Holdings Limited (HKG:41) has not performed well recently and CEO Ka Shui Lo will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 14th of May. 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.

View our latest analysis for Great Eagle Holdings

How Does Total Compensation For Ka Shui Lo Compare With Other Companies In The Industry?

At the time of writing, our data shows that Great Eagle Holdings Limited has a market capitalization of HK$9.9b, and reported total annual CEO compensation of HK$20m for the year to December 2024. This means that the compensation hasn't changed much from last year. Notably, the salary which is HK$15.9m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Real Estate industry with market capitalizations ranging from HK$7.8b to HK$25b, the reported median CEO total compensation was HK$4.9m. This suggests that Ka Shui Lo is paid more than the median for the industry. Moreover, Ka Shui Lo also holds HK$2.2b worth of Great Eagle Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	HK$16m	HK$15m	79%
Other	HK$4.3m	HK$5.0m	21%
Total Compensation	HK$20m	HK$20m	100%

Speaking on an industry level, nearly 81% of total compensation represents salary, while the remainder of 19% is other remuneration. Although there is a difference in how total compensation is set, Great Eagle Holdings 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.

Great Eagle Holdings Limited's Growth

Great Eagle Holdings Limited has reduced its earnings per share by 70% a year over the last three years. Its revenue is up 2.2% over the last year.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Great Eagle Holdings Limited Been A Good Investment?

With a three year total loss of 9.9% for the shareholders, Great Eagle Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

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.

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 Great Eagle Holdings that investors should look into moving forward.

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.