Here's Why It's Unlikely That eBroker Group Limited's (HKG:8036) CEO Will See A Pay Rise This Year

Key Insights

• eBroker Group will host its Annual General Meeting on 30th of May
• Salary of HK$1.49m is part of CEO Chi Ho Lo's total remuneration
• The overall pay is comparable to the industry average
• eBroker Group's three-year loss to shareholders was 65% while its EPS was down 48% over the past three years

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eBroker Group Limited (HKG:8036) has not performed well recently and CEO Chi Ho Lo will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 30th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for eBroker Group

How Does Total Compensation For Chi Ho Lo Compare With Other Companies In The Industry?

According to our data, eBroker Group Limited has a market capitalization of HK$41m, and paid its CEO total annual compensation worth HK$1.5m over the year to December 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is HK$1.49m, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Software industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.4m. This suggests that eBroker Group remunerates its CEO largely in line with the industry average. Moreover, Chi Ho Lo also holds HK$403k worth of eBroker Group stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	HK$1.5m	HK$1.5m	99%
Other	HK$18k	HK$26k	1%
Total Compensation	HK$1.5m	HK$1.5m	100%

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. eBroker Group 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 eBroker Group Limited's Growth Numbers

Over the last three years, eBroker Group Limited has shrunk its earnings per share by 48% per year. It saw its revenue drop 17% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 eBroker Group Limited Been A Good Investment?

With a total shareholder return of -65% over three years, eBroker Group Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

eBroker Group pays its CEO a majority of compensation through a salary. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 2 which shouldn't be ignored) in eBroker Group we think you should know about.

Switching gears from eBroker Group, 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.