There Could Be A Chance Keen Ocean International Holding Limited's (HKG:8070) CEO Will Have Their Compensation Increased

Key Insights

• Keen Ocean International Holding's Annual General Meeting to take place on 13th of June
• CEO Tin Shing Chung's total compensation includes salary of HK$868.0k
• Total compensation is 63% below industry average
• Keen Ocean International Holding's total shareholder return over the past three years was 22% while its EPS grew by 143% over the past three years

Shareholders will probably not be disappointed by the robust results at Keen Ocean International Holding Limited (HKG:8070) recently and they will be keeping this in mind as they go into the AGM on 13th of June. 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.

See our latest analysis for Keen Ocean International Holding

Comparing Keen Ocean International Holding Limited's CEO Compensation With The Industry

According to our data, Keen Ocean International Holding Limited has a market capitalization of HK$48m, and paid its CEO total annual compensation worth HK$886k over the year to December 2023. Notably, that's an increase of 27% over the year before. Notably, the salary which is HK$868.0k, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Electronic industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.4m. That is to say, Tin Shing Chung is paid under the industry median. Moreover, Tin Shing Chung also holds HK$3.3m worth of Keen Ocean International Holding stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	HK$868k	HK$680k	98%
Other	HK$18k	HK$18k	2%
Total Compensation	HK$886k	HK$698k	100%

Talking in terms of the industry, salary represented approximately 79% of total compensation out of all the companies we analyzed, while other remuneration made up 21% of the pie. Keen Ocean International Holding pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Keen Ocean International Holding Limited's Growth Numbers

Keen Ocean International Holding Limited's earnings per share (EPS) grew 143% per year over the last three years. It saw its revenue drop 17% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Keen Ocean International Holding Limited Been A Good Investment?

Keen Ocean International Holding Limited has generated a total shareholder return of 22% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Keen Ocean International Holding pays its CEO a majority of compensation through a salary. The company's overall performance, while not bad, could be better. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for Keen Ocean International Holding (of which 1 is potentially serious!) 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.

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.