Gold Peak Technology Group Limited's (HKG:40) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Gold Peak Technology Group to hold its Annual General Meeting on 2nd of September
• Total pay for CEO Victor Lo includes HK$7.33m salary
• The total compensation is 329% higher than the average for the industry
• Gold Peak Technology Group's three-year loss to shareholders was 24% while its EPS was down 92% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at Gold Peak Technology Group Limited (HKG:40) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 2nd of September. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Gold Peak Technology Group

Comparing Gold Peak Technology Group Limited's CEO Compensation With The Industry

According to our data, Gold Peak Technology Group Limited has a market capitalization of HK$458m, and paid its CEO total annual compensation worth HK$9.3m over the year to March 2024. That's a notable decrease of 8.3% on last year. We note that the salary portion, which stands at HK$7.33m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Electronic industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.2m. This suggests that Victor Lo is paid more than the median for the industry. What's more, Victor Lo holds HK$121m 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	HK$7.3m	HK$8.7m	79%
Other	HK$2.0m	HK$1.5m	21%
Total Compensation	HK$9.3m	HK$10m	100%

On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. Our data reveals that Gold Peak Technology Group allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Gold Peak Technology Group Limited's Growth

Gold Peak Technology Group Limited has reduced its earnings per share by 92% a year over the last three years. It saw its revenue drop 1.6% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Gold Peak Technology Group Limited Been A Good Investment?

Given the total shareholder loss of 24% over three years, many shareholders in Gold Peak Technology Group Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 3 warning signs for Gold Peak Technology Group (of which 2 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Important note: Gold Peak Technology Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.