Some Shareholders May Object To A Pay Rise For Hevol Services Group Co. Limited's (HKG:6093) CEO This Year

Key Insights

• Hevol Services Group will host its Annual General Meeting on 30th of May
• CEO Wenhao Wang's total compensation includes salary of CN¥848.0k
• The overall pay is 32% below the industry average
• Over the past three years, Hevol Services Group's EPS fell by 15% and over the past three years, the total loss to shareholders 64%

We've discovered 2 warning signs about Hevol Services Group. View them for free.

The disappointing performance at Hevol Services Group Co. Limited (HKG:6093) will make some shareholders rather disheartened. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 30th of May. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

See our latest analysis for Hevol Services Group

Comparing Hevol Services Group Co. Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Hevol Services Group Co. Limited has a market capitalization of HK$762m, and reported total annual CEO compensation of CN¥1.0m for the year to December 2024. That's a slight decrease of 6.7% on the prior year. Notably, the salary which is CN¥848.0k, represents most of the total compensation being paid.

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 CN¥1.5m. That is to say, Wenhao Wang is paid under the industry median.

Component	2024	2023	Proportion (2024)
Salary	CN¥848k	CN¥928k	84%
Other	CN¥161k	CN¥153k	16%
Total Compensation	CN¥1.0m	CN¥1.1m	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. Although there is a difference in how total compensation is set, Hevol Services Group 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.

A Look at Hevol Services Group Co. Limited's Growth Numbers

Over the last three years, Hevol Services Group Co. Limited has shrunk its earnings per share by 15% per year. Its revenue is up 3.9% 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. 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 Hevol Services Group Co. Limited Been A Good Investment?

The return of -64% over three years would not have pleased Hevol Services Group Co. Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Hevol Services Group that you should be aware of before investing.

Switching gears from Hevol Services Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.