Fulu Holdings Limited's (HKG:2101) CEO Will Probably Struggle To See A Pay Rise This Year
Key Insights
- Fulu Holdings will host its Annual General Meeting on 23rd of May
- Salary of CN¥587.0k is part of CEO Xi Fu's total remuneration
- Total compensation is 61% below industry average
- Fulu Holdings' EPS declined by 34% over the past three years while total shareholder loss over the past three years was 71%
The disappointing performance at Fulu Holdings Limited (HKG:2101) will make some shareholders rather disheartened. At the upcoming AGM on 23rd of May, 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.
Check out our latest analysis for Fulu Holdings
How Does Total Compensation For Xi Fu Compare With Other Companies In The Industry?
Our data indicates that Fulu Holdings Limited has a market capitalization of HK$629m, and total annual CEO compensation was reported as CN¥638k for the year to December 2024. This means that the compensation hasn't changed much from last year. In particular, the salary of CN¥587.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the Hong Kong Specialty Retail industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥1.6m. In other words, Fulu Holdings pays its CEO lower than the industry median. Furthermore, Xi Fu directly owns HK$236m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | CN¥587k | CN¥622k | 92% |
| Other | CN¥51k | CN¥33k | 8% |
| Total Compensation | CN¥638k | CN¥655k | 100% |
On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. There isn't a significant difference between Fulu Holdings and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Fulu Holdings Limited's Growth
Over the last three years, Fulu Holdings Limited has shrunk its earnings per share by 34% per year. Its revenue is down 36% over the previous year.
Few shareholders would be pleased to read that EPS have declined. 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Fulu Holdings Limited Been A Good Investment?
The return of -71% over three years would not have pleased Fulu Holdings Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Fulu Holdings (1 is significant!) that you should be aware of before investing here.
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.