Some Shareholders May Object To A Pay Rise For China Overseas Land & Investment Limited's (HKG:688) CEO This Year

Key Insights

• China Overseas Land & Investment will host its Annual General Meeting on 25th of June
• Salary of CN¥2.15m is part of CEO ZhiChao Zhang's total remuneration
• The total compensation is 78% less than the average for the industry
• China Overseas Land & Investment's three-year loss to shareholders was 33% while its EPS was down 27% over the past three years

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

The underwhelming performance at China Overseas Land & Investment Limited (HKG:688) recently has probably not pleased shareholders. The next AGM coming up on 25th of June will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. From our analysis below, we think CEO compensation looks appropriate for now.

See our latest analysis for China Overseas Land & Investment

Comparing China Overseas Land & Investment Limited's CEO Compensation With The Industry

At the time of writing, our data shows that China Overseas Land & Investment Limited has a market capitalization of HK$148b, and reported total annual CEO compensation of CN¥3.1m for the year to December 2024. Notably, that's a decrease of 45% over the year before. Notably, the salary which is CN¥2.15m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Real Estate industry with market capitalizations over HK$63b, the reported median total CEO compensation was CN¥14m. In other words, China Overseas Land & Investment pays its CEO lower than the industry median.

Component	2024	2023	Proportion (2024)
Salary	CN¥2.1m	CN¥2.3m	70%
Other	CN¥936k	CN¥3.4m	30%
Total Compensation	CN¥3.1m	CN¥5.6m	100%

Speaking on an industry level, nearly 81% of total compensation represents salary, while the remainder of 19% is other remuneration. In China Overseas Land & Investment's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at China Overseas Land & Investment Limited's Growth Numbers

Over the last three years, China Overseas Land & Investment Limited has shrunk its earnings per share by 27% per year. In the last year, its revenue is down 8.6%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 China Overseas Land & Investment Limited Been A Good Investment?

Few China Overseas Land & Investment Limited shareholders would feel satisfied with the return of -33% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for China Overseas Land & Investment that investors should be aware of in a dynamic business environment.

Switching gears from China Overseas Land & Investment, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.