We Think Some Shareholders May Hesitate To Increase HKT Trust and HKT Limited's (HKG:6823) CEO Compensation

Key Insights

• HKT Trust and HKT to hold its Annual General Meeting on 15th of May
• CEO Susanna Hui's total compensation includes salary of HK$5.01m
• The overall pay is 457% above the industry average
• Over the past three years, HKT Trust and HKT's EPS grew by 1.8% and over the past three years, the total shareholder return was 27%

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Under the guidance of CEO Susanna Hui, HKT Trust and HKT Limited (HKG:6823) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 15th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for HKT Trust and HKT

Comparing HKT Trust and HKT Limited's CEO Compensation With The Industry

According to our data, HKT Trust and HKT Limited has a market capitalization of HK$86b, and paid its CEO total annual compensation worth HK$26m over the year to December 2024. That's just a smallish increase of 5.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at HK$5.0m.

For comparison, other companies in the Hong Kong Telecom industry with market capitalizations above HK$62b, reported a median total CEO compensation of HK$4.6m. Hence, we can conclude that Susanna Hui is remunerated higher than the industry median. Furthermore, Susanna Hui directly owns HK$44m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 42% of total compensation out of all the companies we analyzed, while other remuneration made up 58% of the pie. In HKT Trust and HKT's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at HKT Trust and HKT Limited's Growth Numbers

HKT Trust and HKT Limited has seen its earnings per share (EPS) increase by 1.8% a year over the past three years. Its revenue is up 1.2% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has HKT Trust and HKT Limited Been A Good Investment?

HKT Trust and HKT Limited has served shareholders reasonably well, with a total return of 27% over three years. 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 3 warning signs for HKT Trust and HKT 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.