Shareholders of Trendzon Holdings Group Limited (HKG:1865) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also lacking, despite revenue growth. Shareholders will have a chance to take their concerns to the board at the next AGM on 28 September 2022 and vote on resolutions including executive compensation, which studies show may have an impact on company performance. 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 Trendzon Holdings Group

How Does Total Compensation For Michael Shi Compare With Other Companies In The Industry?

According to our data, Trendzon Holdings Group Limited has a market capitalization of HK$707m, and paid its CEO total annual compensation worth S$991k over the year to March 2022. Notably, that's an increase of 52% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at S$378k.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was S$384k. Hence, we can conclude that Michael Shi is remunerated higher than the industry median.

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. Trendzon Holdings Group pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Trendzon Holdings Group Limited's Growth Numbers

Trendzon Holdings Group Limited has reduced its earnings per share by 2.3% a year over the last three years. Its revenue is up 36% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Trendzon Holdings Group Limited Been A Good Investment?

With a total shareholder return of -40% over three years, Trendzon Holdings Group Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

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. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 6 warning signs for Trendzon Holdings Group you should be aware of, and 3 of them are a bit unpleasant.

Important note: Trendzon Holdings Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.