We Think Some Shareholders May Hesitate To Increase AAC Technologies Holdings Inc.'s (HKG:2018) CEO Compensation

Key Insights

• AAC Technologies Holdings will host its Annual General Meeting on 22nd of May
• Total pay for CEO Benjamin Pan includes CN¥4.67m salary
• Total compensation is 59% above industry average
• AAC Technologies Holdings' total shareholder return over the past three years was 145% while its EPS grew by 12% over the past three years

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CEO Benjamin Pan has done a decent job of delivering relatively good performance at AAC Technologies Holdings Inc. (HKG:2018) recently. As shareholders go into the upcoming AGM on 22nd 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 may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for AAC Technologies Holdings

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

Our data indicates that AAC Technologies Holdings Inc. has a market capitalization of HK$47b, and total annual CEO compensation was reported as CN¥4.7m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. It is worth noting that the CEO compensation consists entirely of the salary, worth CN¥4.7m.

On examining similar-sized companies in the Hong Kong Electronic industry with market capitalizations between HK$31b and HK$94b, we discovered that the median CEO total compensation of that group was CN¥2.9m. This suggests that Benjamin Pan is paid more than the median for the industry. What's more, Benjamin Pan holds HK$7.0b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	CN¥4.7m	CN¥4.6m	100%
Other	-	-	-
Total Compensation	CN¥4.7m	CN¥4.6m	100%

On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. Speaking on a company level, AAC Technologies Holdings prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

AAC Technologies Holdings Inc.'s Growth

AAC Technologies Holdings Inc. has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is up 34%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has AAC Technologies Holdings Inc. Been A Good Investment?

We think that the total shareholder return of 145%, over three years, would leave most AAC Technologies Holdings Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

AAC Technologies Holdings rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AAC Technologies Holdings (free visualization of insider trades).

Switching gears from AAC Technologies 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.