It Looks Like Tian Lun Gas Holdings Limited's (HKG:1600) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Tian Lun Gas Holdings to hold its Annual General Meeting on 29th of May
• Salary of CN¥600.0k is part of CEO Zhenyuan Xian's total remuneration
• Total compensation is similar to the industry average
• Tian Lun Gas Holdings' three-year loss to shareholders was 37% while its EPS was down 32% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at Tian Lun Gas Holdings Limited (HKG:1600) recently. At the upcoming AGM on 29th of May, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Tian Lun Gas Holdings

Comparing Tian Lun Gas Holdings Limited's CEO Compensation With The Industry

According to our data, Tian Lun Gas Holdings Limited has a market capitalization of HK$2.6b, and paid its CEO total annual compensation worth CN¥659k over the year to December 2024. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at CN¥600.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Hong Kong Gas Utilities industry with market caps ranging from HK$1.6b to HK$6.3b, we found that the median CEO total compensation was CN¥757k. So it looks like Tian Lun Gas Holdings compensates Zhenyuan Xian in line with the median for the industry. What's more, Zhenyuan Xian holds HK$24m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	CN¥600k	CN¥600k	91%
Other	CN¥59k	CN¥61k	9%
Total Compensation	CN¥659k	CN¥661k	100%

Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. Tian Lun Gas 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.

Tian Lun Gas Holdings Limited's Growth

Over the last three years, Tian Lun Gas Holdings Limited has shrunk its earnings per share by 32% per year. Revenue was pretty flat on last year.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Tian Lun Gas Holdings Limited Been A Good Investment?

Few Tian Lun Gas Holdings Limited shareholders would feel satisfied with the return of -37% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for Tian Lun Gas Holdings you should be aware of, and 2 of them are a bit unpleasant.

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.