The results at Pioneer Global Group Limited (HKG:224) have been quite disappointing recently and CEO Kenny Gaw bears some responsibility for this. At the upcoming AGM on 21 September 2022, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Pioneer Global Group

Comparing Pioneer Global Group Limited's CEO Compensation With The Industry

Our data indicates that Pioneer Global Group Limited has a market capitalization of HK$1.1b, and total annual CEO compensation was reported as HK$5.4m for the year to March 2016. That's a modest increase of 4.8% on the prior year. In particular, the salary of HK$4.44m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.3m. This suggests that Kenny Gaw is paid more than the median for the industry. What's more, Kenny Gaw holds HK$106m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 71% of total compensation out of all the companies we analyzed, while other remuneration made up 29% of the pie. Pioneer Global Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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 Pioneer Global Group Limited's Growth Numbers

Over the last three years, Pioneer Global Group Limited has shrunk its earnings per share by 27% per year. Its revenue is down 6.4% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Pioneer Global Group Limited Been A Good Investment?

Few Pioneer Global Group Limited shareholders would feel satisfied with the return of -40% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

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. We identified 3 warning signs for Pioneer Global Group (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

Switching gears from Pioneer Global 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.