It's Probably Less Likely That Tianli Holdings Group Limited's (HKG:117) CEO Will See A Huge Pay Rise This Year

Key Insights

• Tianli Holdings Group will host its Annual General Meeting on 20th of June
• Salary of CN¥2.16m is part of CEO Tong Pan's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Tianli Holdings Group's EPS fell by 112% and over the past three years, the total loss to shareholders 41%

Shareholders of Tianli Holdings Group Limited (HKG:117) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also poor, despite revenues growing. Shareholders will have a chance to take their concerns to the board at the next AGM on 20th of June and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

See our latest analysis for Tianli Holdings Group

How Does Total Compensation For Tong Pan Compare With Other Companies In The Industry?

According to our data, Tianli Holdings Group Limited has a market capitalization of HK$238m, and paid its CEO total annual compensation worth CN¥2.3m over the year to December 2023. That's a notable decrease of 14% on last year. Notably, the salary which is CN¥2.16m, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Electronic industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥2.2m. So it looks like Tianli Holdings Group compensates Tong Pan in line with the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	CN¥2.2m	CN¥2.1m	94%
Other	CN¥130k	CN¥612k	6%
Total Compensation	CN¥2.3m	CN¥2.7m	100%

On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. According to our research, Tianli Holdings Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Tianli Holdings Group Limited's Growth Numbers

Tianli Holdings Group Limited has reduced its earnings per share by 112% a year over the last three years. In the last year, its revenue is up 35%.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Tianli Holdings Group Limited Been A Good Investment?

Few Tianli Holdings Group Limited shareholders would feel satisfied with the return of -41% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Tianli Holdings Group you should be aware of, and 1 of them shouldn't be ignored.

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.

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.