We Discuss Whether Echo International Holdings Group Limited's (HKG:8218) CEO Is Due For A Pay Rise

Key Insights

• Echo International Holdings Group's Annual General Meeting to take place on 22nd of September
• Total pay for CEO Yeuk Hung Cheng includes HK$600.0k salary
• The total compensation is 66% less than the average for the industry
• Over the past three years, Echo International Holdings Group's EPS grew by 99% and over the past three years, the total shareholder return was 37%

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Shareholders will be pleased by the impressive results for Echo International Holdings Group Limited (HKG:8218) recently and CEO Yeuk Hung Cheng has played a key role. At the upcoming AGM on 22nd of September, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

Check out our latest analysis for Echo International Holdings Group

How Does Total Compensation For Yeuk Hung Cheng Compare With Other Companies In The Industry?

At the time of writing, our data shows that Echo International Holdings Group Limited has a market capitalization of HK$146m, and reported total annual CEO compensation of HK$790k for the year to March 2025. This was the same amount the CEO received in the prior year. We note that the salary portion, which stands at HK$600.0k constitutes the majority of total compensation received by the CEO.

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$2.3m. That is to say, Yeuk Hung Cheng is paid under the industry median. What's more, Yeuk Hung Cheng holds HK$1.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2025	2024	Proportion (2025)
Salary	HK$600k	HK$600k	76%
Other	HK$190k	HK$190k	24%
Total Compensation	HK$790k	HK$790k	100%

On an industry level, around 78% of total compensation represents salary and 22% is other remuneration. Echo International Holdings Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Echo International Holdings Group Limited's Growth

Echo International Holdings Group Limited's earnings per share (EPS) grew 99% per year over the last three years. Its revenue is down 5.4% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Echo International Holdings Group Limited Been A Good Investment?

We think that the total shareholder return of 37%, over three years, would leave most Echo International Holdings Group Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Echo International Holdings Group that investors should look into moving forward.

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.