Shareholders Will Probably Be Cautious Of Increasing China Electronics Optics Valley Union Holding Company Limited's (HKG:798) CEO Compensation At The Moment

Key Insights

• China Electronics Optics Valley Union Holding's Annual General Meeting to take place on 19th of June
• CEO Liping Huang's total compensation includes salary of CN¥1.01m
• The overall pay is 33% below the industry average
• Over the past three years, China Electronics Optics Valley Union Holding's EPS fell by 46% and over the past three years, the total loss to shareholders 64%

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Performance at China Electronics Optics Valley Union Holding Company Limited (HKG:798) has not been particularly rosy recently and shareholders will likely be holding CEO Liping Huang and the board accountable for this. At the upcoming AGM on 19th of June, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. From our analysis below, we think CEO compensation looks appropriate for now.

See our latest analysis for China Electronics Optics Valley Union Holding

Comparing China Electronics Optics Valley Union Holding Company Limited's CEO Compensation With The Industry

According to our data, China Electronics Optics Valley Union Holding Company Limited has a market capitalization of HK$1.4b, and paid its CEO total annual compensation worth CN¥1.9m over the year to December 2024. That's a notable decrease of 15% on last year. In particular, the salary of CN¥1.01m, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Real Estate industry with market capitalizations ranging between HK$785m and HK$3.1b had a median total CEO compensation of CN¥2.8m. This suggests that Liping Huang is paid below the industry median. Furthermore, Liping Huang directly owns HK$362m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 82% of total compensation represents salary and 18% is other remuneration. China Electronics Optics Valley Union Holding pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

China Electronics Optics Valley Union Holding Company Limited's Growth

China Electronics Optics Valley Union Holding Company Limited has reduced its earnings per share by 46% a year over the last three years. In the last year, its revenue is down 31%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 China Electronics Optics Valley Union Holding Company Limited Been A Good Investment?

Few China Electronics Optics Valley Union Holding Company Limited shareholders would feel satisfied with the return of -64% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid 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 pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for China Electronics Optics Valley Union Holding (2 are a bit unpleasant!) that you should be aware of before investing here.

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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.