Increases to CEO Compensation Might Be Put On Hold For Now at Concord New Energy Group Limited (HKG:182)

Key Insights

• Concord New Energy Group's Annual General Meeting to take place on 7th of June
• Total pay for CEO Kai Gui includes CN¥4.44m salary
• Total compensation is 652% above industry average
• Concord New Energy Group's EPS grew by 9.9% over the past three years while total shareholder return over the past three years was 30%

Under the guidance of CEO Kai Gui, Concord New Energy Group Limited (HKG:182) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 7th of June. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Concord New Energy Group

Comparing Concord New Energy Group Limited's CEO Compensation With The Industry

According to our data, Concord New Energy Group Limited has a market capitalization of HK$5.1b, and paid its CEO total annual compensation worth CN¥5.0m over the year to December 2023. Notably, that's a decrease of 11% over the year before. In particular, the salary of CN¥4.44m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Hong Kong Renewable Energy industry with market caps ranging from HK$3.1b to HK$13b, we found that the median CEO total compensation was CN¥668k. Accordingly, our analysis reveals that Concord New Energy Group Limited pays Kai Gui north of the industry median. Moreover, Kai Gui also holds HK$10.0m worth of Concord New Energy Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	CN¥4.4m	CN¥4.0m	88%
Other	CN¥581k	CN¥1.7m	12%
Total Compensation	CN¥5.0m	CN¥5.6m	100%

On an industry level, roughly 52% of total compensation represents salary and 48% is other remuneration. Concord New Energy Group is paying a higher share of its remuneration through a salary in comparison to the overall 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.

A Look at Concord New Energy Group Limited's Growth Numbers

Concord New Energy Group Limited has seen its earnings per share (EPS) increase by 9.9% a year over the past three years. Its revenue is up 7.8% over the last year.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Concord New Energy Group Limited Been A Good Investment?

Concord New Energy Group Limited has generated a total shareholder return of 30% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Concord New Energy Group (1 doesn't sit too well with us!) that you should be aware of before investing here.

Switching gears from Concord New Energy Group, 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.