Shareholders May Not Be So Generous With Y. T. Realty Group Limited's (HKG:75) CEO Compensation And Here's Why

Key Insights

• Y. T. Realty Group will host its Annual General Meeting on 31st of May
• CEO Hy Sky Wong's total compensation includes salary of HK$2.99m
• The overall pay is 65% above the industry average
• Y. T. Realty Group's EPS declined by 31% over the past three years while total shareholder loss over the past three years was 83%

Shareholders of Y. T. Realty Group Limited (HKG:75) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also poor, despite revenues growing. The AGM coming up on 31st of May will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

Check out our latest analysis for Y. T. Realty Group

How Does Total Compensation For Hy Sky Wong Compare With Other Companies In The Industry?

According to our data, Y. T. Realty Group Limited has a market capitalization of HK$240m, and paid its CEO total annual compensation worth HK$3.0m over the year to December 2023. There was no change in the compensation compared to last year. In particular, the salary of HK$2.99m, makes up a huge portion of the total compensation being paid to the CEO.

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$1.8m. Accordingly, our analysis reveals that Y. T. Realty Group Limited pays Hy Sky Wong north of the industry median. Furthermore, Hy Sky Wong directly owns HK$50m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	HK$3.0m	HK$3.0m	99%
Other	HK$18k	HK$18k	1%
Total Compensation	HK$3.0m	HK$3.0m	100%

On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. Y. T. Realty Group pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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 Y. T. Realty Group Limited's Growth Numbers

Over the last three years, Y. T. Realty Group Limited has shrunk its earnings per share by 31% per year. In the last year, its revenue is up 169%.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Y. T. Realty Group Limited Been A Good Investment?

The return of -83% over three years would not have pleased Y. T. Realty Group Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Hy Sky receives almost all of their compensation through a salary. The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for Y. T. Realty Group (3 are significant!) that you should be aware of before investing here.

Switching gears from Y. T. Realty 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.