Here's Why Shareholders Should Examine E Lighting Group Holdings Limited's (HKG:8222) CEO Compensation Package More Closely

Key Insights

• E Lighting Group Holdings' Annual General Meeting to take place on 12th of September
• Total pay for CEO Raymond Hui includes HK$1.69m salary
• The total compensation is similar to the average for the industry
• E Lighting Group Holdings' three-year loss to shareholders was 36% while its EPS was down 55% over the past three years

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

E Lighting Group Holdings Limited (HKG:8222) has not performed well recently and CEO Raymond Hui will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 12th of September. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for E Lighting Group Holdings

Comparing E Lighting Group Holdings Limited's CEO Compensation With The Industry

According to our data, E Lighting Group Holdings Limited has a market capitalization of HK$17m, and paid its CEO total annual compensation worth HK$1.7m over the year to March 2025. This was the same as last year. We note that the salary portion, which stands at HK$1.69m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Specialty Retail industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.8m. So it looks like E Lighting Group Holdings compensates Raymond Hui in line with the median for the industry. Moreover, Raymond Hui also holds HK$7.8m worth of E Lighting Group Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 85% of total compensation out of all the companies we analyzed, while other remuneration made up 15% of the pie. Investors will find it interesting that E Lighting Group Holdings pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at E Lighting Group Holdings Limited's Growth Numbers

Over the last three years, E Lighting Group Holdings Limited has shrunk its earnings per share by 55% per year. Its revenue is down 6.2% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 E Lighting Group Holdings Limited Been A Good Investment?

Few E Lighting Group Holdings Limited shareholders would feel satisfied with the return of -36% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

E Lighting Group Holdings pays its CEO a majority of compensation through a salary. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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. We did our research and spotted 2 warning signs for E Lighting Group Holdings that investors should look into moving forward.

Switching gears from E Lighting Group Holdings, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.