We Think The Compensation For International Business Digital Technology Limited's (HKG:1782) CEO Looks About Right

Key Insights

• International Business Digital Technology will host its Annual General Meeting on 23rd of May
• Salary of CN¥790.0k is part of CEO Zhimin Shi's total remuneration
• Total compensation is similar to the industry average
• International Business Digital Technology's total shareholder return over the past three years was 490% while its EPS was down 85% over the past three years

We've discovered 2 warning signs about International Business Digital Technology. View them for free.

Despite strong share price growth of 490% for International Business Digital Technology Limited (HKG:1782) 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 May. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

Check out our latest analysis for International Business Digital Technology

Comparing International Business Digital Technology Limited's CEO Compensation With The Industry

Our data indicates that International Business Digital Technology Limited has a market capitalization of HK$3.6b, and total annual CEO compensation was reported as CN¥806k for the year to December 2024. That's a slight decrease of 4.3% on the prior year. In particular, the salary of CN¥790.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong IT industry with market capitalizations ranging from HK$1.6b to HK$6.3b, the reported median CEO total compensation was CN¥875k. So it looks like International Business Digital Technology compensates Zhimin Shi in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	CN¥790k	CN¥826k	98%
Other	CN¥16k	CN¥16k	2%
Total Compensation	CN¥806k	CN¥842k	100%

Talking in terms of the industry, salary represented approximately 82% of total compensation out of all the companies we analyzed, while other remuneration made up 18% of the pie. International Business Digital Technology is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. 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.

A Look at International Business Digital Technology Limited's Growth Numbers

International Business Digital Technology Limited has reduced its earnings per share by 85% a year over the last three years. Its revenue is down 13% 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has International Business Digital Technology Limited Been A Good Investment?

Boasting a total shareholder return of 490% over three years, International Business Digital Technology Limited has done well by shareholders. 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...

Zhimin receives almost all of their compensation through a salary. While the return to shareholders does look promising, it's hard to ignore the lack of earnings growth and this makes us question whether these strong returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for International Business Digital Technology (1 is potentially serious!) that you should be aware of before investing here.

Switching gears from International Business Digital Technology, 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.

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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.