This Is The Reason Why We Think Glorious Sun Enterprises Limited's (HKG:393) CEO Might Be Underpaid

Key Insights

• Glorious Sun Enterprises' Annual General Meeting to take place on 19th of May
• Salary of HK$621.0k is part of CEO Chun Fan Yeung's total remuneration
• Total compensation is 78% below industry average
• Glorious Sun Enterprises' total shareholder return over the past three years was 100% while its EPS grew by 19% over the past three years

We've discovered 3 warning signs about Glorious Sun Enterprises. View them for free.

The impressive results at Glorious Sun Enterprises Limited (HKG:393) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 19th of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for Glorious Sun Enterprises

How Does Total Compensation For Chun Fan Yeung Compare With Other Companies In The Industry?

Our data indicates that Glorious Sun Enterprises Limited has a market capitalization of HK$1.9b, and total annual CEO compensation was reported as HK$756k for the year to December 2024. Notably, that's an increase of 10% over the year before. In particular, the salary of HK$621.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Specialty Retail industry with market capitalizations ranging between HK$779m and HK$3.1b had a median total CEO compensation of HK$3.4m. Accordingly, Glorious Sun Enterprises pays its CEO under the industry median. Furthermore, Chun Fan Yeung directly owns HK$180m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	HK$621k	HK$591k	82%
Other	HK$135k	HK$95k	18%
Total Compensation	HK$756k	HK$686k	100%

On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. There isn't a significant difference between Glorious Sun Enterprises and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Glorious Sun Enterprises Limited's Growth

Glorious Sun Enterprises Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. In the last year, its revenue is up 11%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Glorious Sun Enterprises Limited Been A Good Investment?

We think that the total shareholder return of 100%, over three years, would leave most Glorious Sun Enterprises Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which shouldn't be ignored) in Glorious Sun Enterprises we think you should know about.

Important note: Glorious Sun Enterprises is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.