We Discuss Why Tian Yuan Group Holdings Limited's (HKG:6119) CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year

Key Insights

• Tian Yuan Group Holdings will host its Annual General Meeting on 3rd of June
• Total pay for CEO Jinming Yang includes CN¥744.0k salary
• The overall pay is comparable to the industry average
• Over the past three years, Tian Yuan Group Holdings' EPS grew by 18% and over the past three years, the total shareholder return was 3.5%

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Under the guidance of CEO Jinming Yang, Tian Yuan Group Holdings Limited (HKG:6119) 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 3rd of June. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Tian Yuan Group Holdings

How Does Total Compensation For Jinming Yang Compare With Other Companies In The Industry?

Our data indicates that Tian Yuan Group Holdings Limited has a market capitalization of HK$198m, and total annual CEO compensation was reported as CN¥760k for the year to December 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is CN¥744.0k, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Infrastructure industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥881k. This suggests that Tian Yuan Group Holdings remunerates its CEO largely in line with the industry average. What's more, Jinming Yang holds HK$140m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. Tian Yuan Group Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Tian Yuan Group Holdings Limited's Growth

Tian Yuan Group Holdings Limited has seen its earnings per share (EPS) increase by 18% a year over the past three years. Its revenue is down 1.9% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Tian Yuan Group Holdings Limited Been A Good Investment?

With a total shareholder return of 3.5% over three years, Tian Yuan Group Holdings Limited has done okay by shareholders, but there's always room for improvement. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Tian Yuan Group Holdings pays its CEO a majority of compensation through a salary. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Tian Yuan Group Holdings (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Tian Yuan Group Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.