Here's Why It's Unlikely That Zhong An Group Limited's (HKG:672) CEO Will See A Pay Rise This Year

Key Insights

• Zhong An Group to hold its Annual General Meeting on 5th of June
• Total pay for CEO Jiangang Zhang includes CN¥1.02m salary
• The total compensation is similar to the average for the industry
• Zhong An Group's EPS declined by 35% over the past three years while total shareholder loss over the past three years was 62%

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Zhong An Group Limited (HKG:672) has not performed well recently and CEO Jiangang Zhang 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 5th of June. 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. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Zhong An Group

How Does Total Compensation For Jiangang Zhang Compare With Other Companies In The Industry?

According to our data, Zhong An Group Limited has a market capitalization of HK$592m, and paid its CEO total annual compensation worth CN¥1.1m over the year to December 2024. We note that's a small decrease of 3.2% on last year. We note that the salary portion, which stands at CN¥1.02m 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 CN¥1.5m. This suggests that Zhong An Group remunerates its CEO largely in line with the industry average.

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. Zhong An Group pays out 93% of remuneration in the form of a salary, significantly higher than the industry average. 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.

Zhong An Group Limited's Growth

Over the last three years, Zhong An Group Limited has shrunk its earnings per share by 35% per year. Its revenue is down 3.9% over the previous year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Zhong An Group Limited Been A Good Investment?

With a total shareholder return of -62% over three years, Zhong An Group Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 5 warning signs for Zhong An Group (1 is potentially serious!) that you should be aware of before investing here.

Switching gears from Zhong An 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.