Here's Why Shareholders May Want To Be Cautious With Increasing Chow Tai Fook Jewellery Group Limited's (HKG:1929) CEO Pay Packet

Key Insights

• Chow Tai Fook Jewellery Group will host its Annual General Meeting on 23rd of July
• Total pay for CEO Kent Wong includes HK$6.30m salary
• The total compensation is 131% higher than the average for the industry
• Chow Tai Fook Jewellery Group's EPS declined by 3.7% over the past three years while total shareholder return over the past three years was 11%

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Despite positive share price growth of 11% for Chow Tai Fook Jewellery Group Limited (HKG:1929) over the last few years, earnings growth has been disappointing, which suggests something is amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 23rd of July. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

View our latest analysis for Chow Tai Fook Jewellery Group

Comparing Chow Tai Fook Jewellery Group Limited's CEO Compensation With The Industry

According to our data, Chow Tai Fook Jewellery Group Limited has a market capitalization of HK$139b, and paid its CEO total annual compensation worth HK$20m over the year to March 2025. There was no change in the compensation compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$6.3m.

On comparing similar companies in the Hong Kong Specialty Retail industry with market capitalizations above HK$63b, we found that the median total CEO compensation was HK$8.7m. This suggests that Kent Wong is paid more than the median for the industry.

Component	2025	2025	Proportion (2025)
Salary	HK$6.3m	HK$6.3m	31%
Other	HK$14m	HK$14m	69%
Total Compensation	HK$20m	HK$20m	100%

Speaking on an industry level, nearly 83% of total compensation represents salary, while the remainder of 17% is other remuneration. Chow Tai Fook Jewellery Group 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.

Chow Tai Fook Jewellery Group Limited's Growth

Over the last three years, Chow Tai Fook Jewellery Group Limited has shrunk its earnings per share by 3.7% per year. It saw its revenue drop 18% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Chow Tai Fook Jewellery Group Limited Been A Good Investment?

Chow Tai Fook Jewellery Group Limited has served shareholders reasonably well, with a total return of 11% 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...

Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

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. That's why we did some digging and identified 2 warning signs for Chow Tai Fook Jewellery Group that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.