The underwhelming performance at Kwan On Holdings Limited (HKG:1559) recently has probably not pleased shareholders. At the upcoming AGM on 28 September 2022, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

See our latest analysis for Kwan On Holdings

How Does Total Compensation For Zhang Fangbing Compare With Other Companies In The Industry?

According to our data, Kwan On Holdings Limited has a market capitalization of HK$239m, and paid its CEO total annual compensation worth HK$870k over the year to March 2022. Notably, that's a decrease of 9.4% over the year before. Notably, the salary of HK$870k is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.1m. In other words, Kwan On Holdings pays its CEO lower than the industry median.

Talking in terms of the industry, salary represented approximately 83% of total compensation out of all the companies we analyzed, while other remuneration made up 17% of the pie. At the company level, Kwan On Holdings pays Zhang Fangbing solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Kwan On Holdings Limited's Growth

Over the last three years, Kwan On Holdings Limited has shrunk its earnings per share by 115% per year. Its revenue is down 4.3% over the previous year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Kwan On Holdings Limited Been A Good Investment?

Few Kwan On Holdings Limited shareholders would feel satisfied with the return of -67% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Kwan On Holdings rewards its CEO solely through a salary, ignoring non-salary benefits completely. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Kwan On Holdings you should be aware of, and 1 of them can't be ignored.

Switching gears from Kwan On 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.