Shareholders May Be More Conservative With China ITS (Holdings) Co., Ltd.'s (HKG:1900) CEO Compensation For Now

Key Insights

• China ITS (Holdings) will host its Annual General Meeting on 28th of May
• CEO Hailin Jiang's total compensation includes salary of CN¥1.08m
• The total compensation is 33% higher than the average for the industry
• China ITS (Holdings)'s total shareholder return over the past three years was 21% while its EPS was down 34% over the past three years

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The share price of China ITS (Holdings) Co., Ltd. (HKG:1900) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 28th of May. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Check out our latest analysis for China ITS (Holdings)

How Does Total Compensation For Hailin Jiang Compare With Other Companies In The Industry?

Our data indicates that China ITS (Holdings) Co., Ltd. has a market capitalization of HK$232m, and total annual CEO compensation was reported as CN¥2.1m for the year to December 2024. We note that's an increase of 17% above last year. In particular, the salary of CN¥1.08m, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong IT industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.6m. This suggests that Hailin Jiang is paid more than the median for the industry. Moreover, Hailin Jiang also holds HK$13m worth of China ITS (Holdings) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 82% of total compensation represents salary, while the remainder of 18% is other remuneration. China ITS (Holdings) pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

China ITS (Holdings) Co., Ltd.'s Growth

Over the last three years, China ITS (Holdings) Co., Ltd. has shrunk its earnings per share by 34% per year. It saw its revenue drop 4.4% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet 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 China ITS (Holdings) Co., Ltd. Been A Good Investment?

China ITS (Holdings) Co., Ltd. has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for China ITS (Holdings) that investors should think about before committing capital to this stock.

Switching gears from China ITS (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.

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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.