It's Unlikely That Concord New Energy Group Limited's (HKG:182) CEO Will See A Huge Pay Rise This Year

Key Insights

• Concord New Energy Group to hold its Annual General Meeting on 23rd of May
• CEO Kai Gui's total compensation includes salary of CN¥4.62m
• Total compensation is 668% above industry average
• Concord New Energy Group's three-year loss to shareholders was 25% while its EPS grew by 2.9% over the past three years

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In the past three years, the share price of Concord New Energy Group Limited (HKG:182) has struggled to grow and now shareholders are sitting on a loss. 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 23rd of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Concord New Energy Group

How Does Total Compensation For Kai Gui Compare With Other Companies In The Industry?

Our data indicates that Concord New Energy Group Limited has a market capitalization of HK$3.8b, and total annual CEO compensation was reported as CN¥4.9m for the year to December 2024. We note that's a small decrease of 3.2% on last year. Notably, the salary which is CN¥4.62m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Renewable Energy industry with market capitalizations ranging from HK$1.6b to HK$6.3b, the reported median CEO total compensation was CN¥633k. Accordingly, our analysis reveals that Concord New Energy Group Limited pays Kai Gui north of the industry median. Furthermore, Kai Gui directly owns HK$7.6m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 46% of total compensation out of all the companies we analyzed, while other remuneration made up 54% of the pie. Concord New Energy Group 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.

Concord New Energy Group Limited's Growth

Over the past three years, Concord New Energy Group Limited has seen its earnings per share (EPS) grow by 2.9% per year. It achieved revenue growth of 6.3% over the last year.

We're not particularly impressed by the revenue growth, but we're happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Concord New Energy Group Limited Been A Good Investment?

Given the total shareholder loss of 25% over three years, many shareholders in Concord New Energy Group Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

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 probably be keen to find out what are the other factors could be weighing down the stock. 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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for Concord New Energy Group you should be aware of, and 1 of them doesn't sit too well with us.

Important note: Concord New Energy Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.