Increases to CEO Compensation Might Be Put On Hold For Now at Kerry Properties Limited (HKG:683)

Key Insights

• Kerry Properties' Annual General Meeting to take place on 23rd of May
• CEO Khoon Hua Kuok's total compensation includes salary of HK$6.58m
• The overall pay is 48% above the industry average
• Kerry Properties' EPS declined by 57% over the past three years while total shareholder return over the past three years was 19%

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Performance at Kerry Properties Limited (HKG:683) has been reasonably good and CEO Khoon Hua Kuok has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 23rd of May. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Kerry Properties

Comparing Kerry Properties Limited's CEO Compensation With The Industry

Our data indicates that Kerry Properties Limited has a market capitalization of HK$28b, and total annual CEO compensation was reported as HK$15m for the year to December 2024. That's a notable increase of 8.5% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$6.6m.

In comparison with other companies in the Hong Kong Real Estate industry with market capitalizations ranging from HK$16b to HK$50b, the reported median CEO total compensation was HK$10m. Accordingly, our analysis reveals that Kerry Properties Limited pays Khoon Hua Kuok north of the industry median. Moreover, Khoon Hua Kuok also holds HK$132m worth of Kerry Properties stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

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. Kerry Properties pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Kerry Properties Limited's Growth

Over the last three years, Kerry Properties Limited has shrunk its earnings per share by 57% per year. In the last year, its revenue is up 49%.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Kerry Properties Limited Been A Good Investment?

Kerry Properties Limited has served shareholders reasonably well, with a total return of 19% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

The overall company performance has been commendable, however there are still areas for improvement. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Kerry Properties (of which 2 are a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

Important note: Kerry Properties is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.