Plover Bay Technologies Limited's (HKG:1523) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Plover Bay Technologies to hold its Annual General Meeting on 26th of April
• CEO Kit Wai Chau's total compensation includes salary of US$217.0k
• The total compensation is 89% higher than the average for the industry
• Plover Bay Technologies' total shareholder return over the past three years was 103% while its EPS grew by 24% over the past three years

Under the guidance of CEO Kit Wai Chau, Plover Bay Technologies Limited (HKG:1523) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 26th of April. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Plover Bay Technologies

How Does Total Compensation For Kit Wai Chau Compare With Other Companies In The Industry?

According to our data, Plover Bay Technologies Limited has a market capitalization of HK$2.8b, and paid its CEO total annual compensation worth US$219k over the year to December 2023. That's mostly flat as compared to the prior year's compensation. In particular, the salary of US$217.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Hong Kong Communications industry with market caps ranging from HK$1.6b to HK$6.3b, we found that the median CEO total compensation was US$116k. Hence, we can conclude that Kit Wai Chau is remunerated higher than the industry median. What's more, Kit Wai Chau holds HK$15m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$217k	US$216k	99%
Other	US$2.0k	US$2.0k	1%
Total Compensation	US$219k	US$218k	100%

Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. Plover Bay Technologies pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Plover Bay Technologies Limited's Growth

Plover Bay Technologies Limited's earnings per share (EPS) grew 24% per year over the last three years. Its revenue is up 8.6% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Plover Bay Technologies Limited Been A Good Investment?

Most shareholders would probably be pleased with Plover Bay Technologies Limited for providing a total return of 103% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Kit Wai receives almost all of their compensation through a salary. 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 1 warning sign for Plover Bay Technologies 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.