We Discuss Why Apex Ace Holding Limited's (HKG:6036) CEO May Deserve A Higher Pay Packet

Key Insights

• Apex Ace Holding to hold its Annual General Meeting on 21st of May
• Salary of HK$720.0k is part of CEO Bing Kwong Lee's total remuneration
• Total compensation is 33% below industry average
• Over the past three years, Apex Ace Holding's EPS fell by 2.1% and over the past three years, the total shareholder return was 23%

We've discovered 3 warning signs about Apex Ace Holding. View them for free.

Shareholders will probably not be disappointed by the robust results at Apex Ace Holding Limited (HKG:6036) recently and they will be keeping this in mind as they go into the AGM on 21st of May. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

Check out our latest analysis for Apex Ace Holding

Comparing Apex Ace Holding Limited's CEO Compensation With The Industry

Our data indicates that Apex Ace Holding Limited has a market capitalization of HK$559m, and total annual CEO compensation was reported as HK$1.6m for the year to December 2024. This was the same amount the CEO received in the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$720k.

On comparing similar-sized companies in the Hong Kong Electronic industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.4m. In other words, Apex Ace Holding pays its CEO lower than the industry median. What's more, Bing Kwong Lee holds HK$398m 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$720k	HK$720k	44%
Other	HK$910k	HK$910k	56%
Total Compensation	HK$1.6m	HK$1.6m	100%

Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. Apex Ace Holding pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Apex Ace Holding Limited's Growth Numbers

Over the last three years, Apex Ace Holding Limited has shrunk its earnings per share by 2.1% per year. It achieved revenue growth of 21% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Apex Ace Holding Limited Been A Good Investment?

Apex Ace Holding Limited has served shareholders reasonably well, with a total return of 23% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Apex Ace Holding (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

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.