Key Insights

• Expert Systems Holdings to hold its Annual General Meeting on 15th of September
• Salary of HK$2.25m is part of CEO Andy Lau's total remuneration
• Total compensation is 58% above industry average
• Expert Systems Holdings' total shareholder return over the past three years was 26% while its EPS grew by 15% over the past three years

CEO Andy Lau has done a decent job of delivering relatively good performance at Expert Systems Holdings Limited (HKG:8319) 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 15th of September. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Expert Systems Holdings

Comparing Expert Systems Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Expert Systems Holdings Limited has a market capitalization of HK$96m, and reported total annual CEO compensation of HK$2.5m for the year to March 2023. Notably, that's a decrease of 20% over the year before. In particular, the salary of HK$2.25m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong IT industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.6m. This suggests that Andy Lau is paid more than the median for the industry. What's more, Andy Lau holds HK$12m 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 74% of total compensation out of all the companies we analyzed, while other remuneration made up 26% of the pie. Expert Systems Holdings 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 Expert Systems Holdings Limited's Growth Numbers

Expert Systems Holdings Limited's earnings per share (EPS) grew 15% per year over the last three years. In the last year, its revenue is up 25%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Expert Systems Holdings Limited Been A Good Investment?

With a total shareholder return of 26% over three years, Expert Systems Holdings Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Expert Systems Holdings 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.