It's Unlikely That Chanjet Information Technology Company Limited's (HKG:1588) CEO Will See A Huge Pay Rise This Year

Key Insights

• Chanjet Information Technology's Annual General Meeting to take place on 20th of May
• Total pay for CEO Yuchun Yang includes CN¥1.51m salary
• Total compensation is 36% above industry average
• Chanjet Information Technology's EPS grew by 85% over the past three years while total shareholder loss over the past three years was 10%

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In the past three years, shareholders of Chanjet Information Technology Company Limited (HKG:1588) have seen a loss on their investment. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 20th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Chanjet Information Technology

How Does Total Compensation For Yuchun Yang Compare With Other Companies In The Industry?

Our data indicates that Chanjet Information Technology Company Limited has a market capitalization of HK$2.2b, and total annual CEO compensation was reported as CN¥3.7m for the year to December 2024. Notably, that's a decrease of 10% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥1.5m.

On comparing similar companies from the Hong Kong Software industry with market caps ranging from HK$779m to HK$3.1b, we found that the median CEO total compensation was CN¥2.7m. This suggests that Yuchun Yang is paid more than the median for the industry.

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. It's interesting to note that Chanjet Information Technology allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Chanjet Information Technology Company Limited's Growth

Over the past three years, Chanjet Information Technology Company Limited has seen its earnings per share (EPS) grow by 85% per year. Its revenue is up 20% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Chanjet Information Technology Company Limited Been A Good Investment?

Since shareholders would have lost about 10% over three years, some Chanjet Information Technology Company Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

Shareholders may want to check for free if Chanjet Information Technology insiders are buying or selling shares.

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.