Most Shareholders Will Probably Find That The Compensation For Hi-Level Technology Holdings Limited's (HKG:8113) CEO Is Reasonable

Shareholders may be wondering what CEO Benson Chang plans to do to improve the less than great performance at Hi-Level Technology Holdings Limited (HKG:8113) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 18 May 2021. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

See our latest analysis for Hi-Level Technology Holdings

Comparing Hi-Level Technology Holdings Limited's CEO Compensation With the industry

According to our data, Hi-Level Technology Holdings Limited has a market capitalization of HK$300m, and paid its CEO total annual compensation worth HK$1.1m over the year to December 2020. That's a modest increase of 5.8% on the prior year. In particular, the salary of HK$1.00m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.9m. That is to say, Benson Chang is paid under the industry median. Moreover, Benson Chang also holds HK$35m worth of Hi-Level Technology Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	HK$1.0m	HK$985k	87%
Other	HK$148k	HK$100k	13%
Total Compensation	HK$1.1m	HK$1.1m	100%

Speaking on an industry level, nearly 76% of total compensation represents salary, while the remainder of 24% is other remuneration. Hi-Level Technology Holdings pays out 87% of remuneration in the form of a salary, significantly higher than the industry average. 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.

Hi-Level Technology Holdings Limited's Growth

Hi-Level Technology Holdings Limited has seen its earnings per share (EPS) increase by 1.5% a year over the past three years. In the last year, its revenue is up 41%.

We like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. We wouldn't say this is necessarily top notch growth, but it is certainly promising. 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 Hi-Level Technology Holdings Limited Been A Good Investment?

Since shareholders would have lost about 23% over three years, some Hi-Level Technology Holdings Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The loss to shareholders over the past three years is certainly concerning. The lacklustre earnings growth perhaps may have something to do with the downward trend in the share price. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for Hi-Level Technology Holdings you should be aware of, and 1 of them is potentially serious.

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. 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.
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