As many shareholders of EverChina Int'l Holdings Company Limited (HKG:202) will be aware, they have not made a gain on their investment in the past three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 23 September 2022. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for EverChina Int'l Holdings

Comparing EverChina Int'l Holdings Company Limited's CEO Compensation With The Industry

At the time of writing, our data shows that EverChina Int'l Holdings Company Limited has a market capitalization of HK$1.3b, and reported total annual CEO compensation of HK$4.8m for the year to March 2022. That's a fairly small increase of 6.5% over the previous year. In particular, the salary of HK$4.10m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations ranging from HK$785m to HK$3.1b, the reported median CEO total compensation was HK$3.0m. This suggests that Richard Lam is paid more than the median for the industry. What's more, Richard Lam holds HK$1.3m worth of shares in the company in their own name.

Speaking on an industry level, nearly 72% of total compensation represents salary, while the remainder of 28% is other remuneration. It's interesting to note that EverChina Int'l Holdings pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

EverChina Int'l Holdings Company Limited's Growth

EverChina Int'l Holdings Company Limited has seen its earnings per share (EPS) increase by 49% a year over the past three years. In the last year, its revenue is up 18%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 EverChina Int'l Holdings Company Limited Been A Good Investment?

With a three year total loss of 13% for the shareholders, EverChina Int'l Holdings Company Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

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 be keen to know what's holding the stock back when earnings have grown. 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.

Shareholders may want to check for free if EverChina Int'l Holdings insiders are buying or selling shares.

Switching gears from EverChina Int'l Holdings, 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.