Here's Why Some Shareholders May Not Be Too Generous With Hutchison Telecommunications Hong Kong Holdings Limited's (HKG:215) CEO Compensation This Year

Key Insights

• Hutchison Telecommunications Hong Kong Holdings to hold its Annual General Meeting on 9th of May
• CEO Kenny Koo's total compensation includes salary of HK$2.96m
• Total compensation is 36% below industry average
• Over the past three years, Hutchison Telecommunications Hong Kong Holdings' EPS fell by 105% and over the past three years, the total loss to shareholders 8.2%

The disappointing performance at Hutchison Telecommunications Hong Kong Holdings Limited (HKG:215) will make some shareholders rather disheartened. At the upcoming AGM on 9th of May, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

Check out our latest analysis for Hutchison Telecommunications Hong Kong Holdings

How Does Total Compensation For Kenny Koo Compare With Other Companies In The Industry?

At the time of writing, our data shows that Hutchison Telecommunications Hong Kong Holdings Limited has a market capitalization of HK$5.0b, and reported total annual CEO compensation of HK$4.9m for the year to December 2023. That's a fairly small increase of 3.4% over the previous year. We note that the salary portion, which stands at HK$2.96m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Hong Kong Wireless Telecom industry with market capitalizations between HK$3.1b and HK$13b, we discovered that the median CEO total compensation of that group was HK$7.6m. In other words, Hutchison Telecommunications Hong Kong Holdings pays its CEO lower than the industry median.

Component	2023	2022	Proportion (2023)
Salary	HK$3.0m	HK$3.0m	61%
Other	HK$1.9m	HK$1.8m	39%
Total Compensation	HK$4.9m	HK$4.7m	100%

On an industry level, roughly 39% of total compensation represents salary and 61% is other remuneration. Hutchison Telecommunications Hong Kong Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Hutchison Telecommunications Hong Kong Holdings Limited's Growth Numbers

Over the last three years, Hutchison Telecommunications Hong Kong Holdings Limited has shrunk its earnings per share by 105% per year. Revenue was pretty flat on last year.

The decline in EPS is a bit concerning. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Hutchison Telecommunications Hong Kong Holdings Limited Been A Good Investment?

Given the total shareholder loss of 8.2% over three years, many shareholders in Hutchison Telecommunications Hong Kong Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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 pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which is a bit unpleasant) in Hutchison Telecommunications Hong Kong Holdings we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.