We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Jinhui Shipping and Transportation Limited's (OB:JIN) CEO For Now

Key Insights

• Jinhui Shipping and Transportation will host its Annual General Meeting on 28th of May
• CEO Thomas Ng's total compensation includes salary of US$3.08m
• Total compensation is 770% above industry average
• Jinhui Shipping and Transportation's EPS declined by 50% over the past three years while total shareholder loss over the past three years was 63%

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The underwhelming share price performance of Jinhui Shipping and Transportation Limited (OB:JIN) in the past three years would have disappointed many shareholders. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 28th of May, where they can impact on future company performance by voting on resolutions, including executive compensation. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

See our latest analysis for Jinhui Shipping and Transportation

How Does Total Compensation For Thomas Ng Compare With Other Companies In The Industry?

At the time of writing, our data shows that Jinhui Shipping and Transportation Limited has a market capitalization of kr618m, and reported total annual CEO compensation of US$4.1m for the year to December 2024. That's just a smallish increase of 5.0% on last year. Notably, the salary which is US$3.08m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Norwegian Shipping industry with market capitalizations below kr2.0b, we found that the median total CEO compensation was US$470k. Accordingly, our analysis reveals that Jinhui Shipping and Transportation Limited pays Thomas Ng north of the industry median. What's more, Thomas Ng holds kr6.4m worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	US$3.1m	US$3.1m	75%
Other	US$1.0m	US$817k	25%
Total Compensation	US$4.1m	US$3.9m	100%

On an industry level, roughly 54% of total compensation represents salary and 46% is other remuneration. Jinhui Shipping and Transportation pays out 75% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Jinhui Shipping and Transportation Limited's Growth Numbers

Over the last three years, Jinhui Shipping and Transportation Limited has shrunk its earnings per share by 50% per year. It achieved revenue growth of 93% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Jinhui Shipping and Transportation Limited Been A Good Investment?

With a total shareholder return of -63% over three years, Jinhui Shipping and Transportation Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. In 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 is in line with their expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Jinhui Shipping and Transportation that investors should be aware of in a dynamic business environment.

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.