Here's Why Shareholders Will Not Be Complaining About Novautek Technologies Group Limited's (HKG:519) CEO Pay Packet

Key Insights

• Novautek Technologies Group to hold its Annual General Meeting on 17th of December
• Salary of HK$1.03m is part of CEO Zhanming Wu's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Novautek Technologies Group's EPS grew by 61% and over the past three years, the total shareholder return was 156%

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It would be hard to discount the role that CEO Zhanming Wu has played in delivering the impressive results at Novautek Technologies Group Limited (HKG:519) recently. Coming up to the next AGM on 17th of December, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Novautek Technologies Group

Comparing Novautek Technologies Group Limited's CEO Compensation With The Industry

Our data indicates that Novautek Technologies Group Limited has a market capitalization of HK$657m, and total annual CEO compensation was reported as HK$1.4m for the year to June 2025. That's a modest increase of 3.4% on the prior year. Notably, the salary which is HK$1.03m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Real Estate industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.6m. From this we gather that Zhanming Wu is paid around the median for CEOs in the industry. Moreover, Zhanming Wu also holds HK$178m worth of Novautek Technologies Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. Novautek Technologies Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Novautek Technologies Group Limited's Growth

Over the past three years, Novautek Technologies Group Limited has seen its earnings per share (EPS) grow by 61% per year. It saw its revenue drop 19% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Novautek Technologies Group Limited Been A Good Investment?

Most shareholders would probably be pleased with Novautek Technologies Group Limited for providing a total return of 156% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

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 1 which makes us a bit uncomfortable) in Novautek Technologies Group 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.