Shareholders May Be More Conservative With Yeebo (International Holdings) Limited's (HKG:259) CEO Compensation For Now

Key Insights

• Yeebo (International Holdings)'s Annual General Meeting to take place on 21st of September
• Salary of HK$5.08m is part of CEO Frankie Li's total remuneration
• The total compensation is 46% higher than the average for the industry
• Over the past three years, Yeebo (International Holdings)'s EPS grew by 72% and over the past three years, the total shareholder return was 92%

Performance at Yeebo (International Holdings) Limited (HKG:259) has been reasonably good and CEO Frankie Li has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 21st of September. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Yeebo (International Holdings)

Comparing Yeebo (International Holdings) Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Yeebo (International Holdings) Limited has a market capitalization of HK$2.7b, and reported total annual CEO compensation of HK$5.3m for the year to March 2023. That's a notable increase of 17% on last year. Notably, the salary which is HK$5.08m, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Electronic industry with market capitalizations ranging between HK$1.6b and HK$6.3b had a median total CEO compensation of HK$3.6m. Accordingly, our analysis reveals that Yeebo (International Holdings) Limited pays Frankie Li north of the industry median. Furthermore, Frankie Li directly owns HK$310m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	HK$5.1m	HK$4.4m	95%
Other	HK$254k	HK$217k	5%
Total Compensation	HK$5.3m	HK$4.6m	100%

On an industry level, roughly 77% of total compensation represents salary and 23% is other remuneration. Yeebo (International Holdings) 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 total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Yeebo (International Holdings) Limited's Growth

Over the past three years, Yeebo (International Holdings) Limited has seen its earnings per share (EPS) grow by 72% per year. Its revenue is up 4.7% 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Yeebo (International Holdings) Limited Been A Good Investment?

Boasting a total shareholder return of 92% over three years, Yeebo (International Holdings) Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Yeebo (International Holdings) pays its CEO a majority of compensation through a salary. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Yeebo (International Holdings) that investors should look into moving forward.

Switching gears from Yeebo (International 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.

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.