Shareholders Will Probably Not Have Any Issues With Yeebo (International Holdings) Limited's (HKG:259) CEO Compensation

Key Insights

• Yeebo (International Holdings)'s Annual General Meeting to take place on 16th of August
• CEO Frankie Li's total compensation includes salary of HK$5.08m
• The total compensation is 31% less than the average for the industry
• Yeebo (International Holdings)'s total shareholder return over the past three years was 9.7% while its EPS was down 0.5% over the past three years

The performance at Yeebo (International Holdings) Limited (HKG:259) has been rather lacklustre of late and shareholders may be wondering what CEO Frankie Li is planning to do about this. At the next AGM coming up on 16th of August, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out our latest analysis for Yeebo (International Holdings)

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

According to our data, Yeebo (International Holdings) Limited has a market capitalization of HK$2.6b, and paid its CEO total annual compensation worth HK$5.3m over the year to March 2024. This was the same as last year. In particular, the salary of HK$5.08m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Hong Kong Electronic industry with market capitalizations between HK$1.6b and HK$6.2b, we discovered that the median CEO total compensation of that group was HK$7.7m. Accordingly, Yeebo (International Holdings) pays its CEO under the industry median. Moreover, Frankie Li also holds HK$305m worth of Yeebo (International Holdings) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	HK$5.1m	HK$5.1m	95%
Other	HK$254k	HK$254k	5%
Total Compensation	HK$5.3m	HK$5.3m	100%

Speaking on an industry level, nearly 78% of total compensation represents salary, while the remainder of 22% is other remuneration. Yeebo (International Holdings) pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Yeebo (International Holdings) Limited's Growth Numbers

Over the last three years, Yeebo (International Holdings) Limited has not seen its earnings per share change much, though they have deteriorated slightly. It saw its revenue drop 29% over the last year.

The lack of EPS growth is certainly uninspiring. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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

Yeebo (International Holdings) Limited has generated a total shareholder return of 9.7% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. 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...

Yeebo (International Holdings) pays its CEO a majority of compensation through a salary. Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. Shareholders might want to question the board about these concerns, and revisit their investment thesis for the company.

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 Yeebo (International 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.