We Take A Look At Whether Guangdong Yueyun Transportation Company Limited's (HKG:3399) CEO May Be Underpaid

Key Insights

• Guangdong Yueyun Transportation's Annual General Meeting to take place on 30th of June
• Salary of CN¥672.9k is part of CEO Fang Zhu's total remuneration
• The overall pay is 31% below the industry average
• Over the past three years, Guangdong Yueyun Transportation's EPS grew by 109% and over the past three years, the total shareholder return was 136%

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The solid performance at Guangdong Yueyun Transportation Company Limited (HKG:3399) has been impressive and shareholders will probably be pleased to know that CEO Fang Zhu has delivered. At the upcoming AGM on 30th of June, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. 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 Guangdong Yueyun Transportation

How Does Total Compensation For Fang Zhu Compare With Other Companies In The Industry?

At the time of writing, our data shows that Guangdong Yueyun Transportation Company Limited has a market capitalization of HK$1.3b, and reported total annual CEO compensation of CN¥720k for the year to December 2024. That's a notable increase of 28% on last year. Notably, the salary which is CN¥672.9k, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Logistics industry with market capitalizations ranging from HK$785m to HK$3.1b, the reported median CEO total compensation was CN¥1.0m. In other words, Guangdong Yueyun Transportation pays its CEO lower than the industry median.

On an industry level, around 88% of total compensation represents salary and 12% is other remuneration. Although there is a difference in how total compensation is set, Guangdong Yueyun Transportation more or less reflects the market in terms of setting the salary. 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.

A Look at Guangdong Yueyun Transportation Company Limited's Growth Numbers

Guangdong Yueyun Transportation Company Limited's earnings per share (EPS) grew 109% per year over the last three years. Revenue was pretty flat on last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Guangdong Yueyun Transportation Company Limited Been A Good Investment?

We think that the total shareholder return of 136%, over three years, would leave most Guangdong Yueyun Transportation Company 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 the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Guangdong Yueyun Transportation that investors should think about before committing capital to this 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.

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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.