We Think Shareholders Are Less Likely To Approve A Pay Rise For AMS Public Transport Holdings Limited's (HKG:77) CEO For Now

Key Insights

• AMS Public Transport Holdings to hold its Annual General Meeting on 29th of August
• Salary of HK$3.97m is part of CEO Man Chun Chan's total remuneration
• Total compensation is similar to the industry average
• AMS Public Transport Holdings' EPS grew by 8.0% over the past three years while total shareholder loss over the past three years was 11%

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In the past three years, shareholders of AMS Public Transport Holdings Limited (HKG:77) have seen a loss on their investment. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 29th of August could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for AMS Public Transport Holdings

How Does Total Compensation For Man Chun Chan Compare With Other Companies In The Industry?

At the time of writing, our data shows that AMS Public Transport Holdings Limited has a market capitalization of HK$128m, and reported total annual CEO compensation of HK$4.4m for the year to March 2025. That's mostly flat as compared to the prior year's compensation. In particular, the salary of HK$3.97m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Transportation industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$5.0m. So it looks like AMS Public Transport Holdings compensates Man Chun Chan in line with the median for the industry. What's more, Man Chun Chan holds HK$1.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. According to our research, AMS Public Transport Holdings has allocated a higher percentage of pay to salary in comparison to the wider industry. 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.

AMS Public Transport Holdings Limited's Growth

Over the past three years, AMS Public Transport Holdings Limited has seen its earnings per share (EPS) grow by 8.0% per year. In the last year, its revenue is up 5.4%.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has AMS Public Transport Holdings Limited Been A Good Investment?

Since shareholders would have lost about 11% over three years, some AMS Public Transport Holdings Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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 4 warning signs for AMS Public Transport Holdings 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.