Increases to Yan Tat Group Holdings Limited's (HKG:1480) CEO Compensation Might Cool off for now

Key Insights

• Yan Tat Group Holdings' Annual General Meeting to take place on 30th of May
• Total pay for CEO YW Chan includes HK$2.54m salary
• The total compensation is 169% higher than the average for the industry
• Yan Tat Group Holdings' total shareholder return over the past three years was 5.5% while its EPS grew by 9.3% over the past three years

We've discovered 2 warning signs about Yan Tat Group Holdings. View them for free.

CEO YW Chan has done a decent job of delivering relatively good performance at Yan Tat Group Holdings Limited (HKG:1480) recently. As shareholders go into the upcoming AGM on 30th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Yan Tat Group Holdings

Comparing Yan Tat Group Holdings Limited's CEO Compensation With The Industry

According to our data, Yan Tat Group Holdings Limited has a market capitalization of HK$242m, and paid its CEO total annual compensation worth HK$6.6m over the year to December 2024. That's a notable decrease of 10% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at HK$2.5m.

On comparing similar-sized companies in the Hong Kong Electronic industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.5m. Hence, we can conclude that YW Chan is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	HK$2.5m	HK$2.2m	38%
Other	HK$4.1m	HK$5.2m	62%
Total Compensation	HK$6.6m	HK$7.3m	100%

On an industry level, around 79% of total compensation represents salary and 21% is other remuneration. In Yan Tat Group Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Yan Tat Group Holdings Limited's Growth

Yan Tat Group Holdings Limited has seen its earnings per share (EPS) increase by 9.3% a year over the past three years. In the last year, its revenue is down 7.9%.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Yan Tat Group Holdings Limited Been A Good Investment?

Yan Tat Group Holdings Limited has not done too badly by shareholders, with a total return of 5.5%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Yan Tat Group Holdings that you should be aware of before investing.

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.