Shareholders will probably not be too impressed with the underwhelming results at BExcellent Group Holdings Limited (HKG:1775) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 14 December 2022. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View our latest analysis for BExcellent Group Holdings
How Does Total Compensation For Wai Lung Tam Compare With Other Companies In The Industry?
Our data indicates that BExcellent Group Holdings Limited has a market capitalization of HK$224m, and total annual CEO compensation was reported as HK$3.3m for the year to July 2022. That's a fairly small increase of 6.3% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$1.3m.
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. Accordingly, our analysis reveals that BExcellent Group Holdings Limited pays Wai Lung Tam north of the industry median.
| Component | 2022 | 2021 | Proportion (2022) |
| Salary | HK$1.3m | HK$1.2m | 40% |
| Other | HK$2.0m | HK$1.9m | 60% |
| Total Compensation | HK$3.3m | HK$3.1m | 100% |
On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. In BExcellent Group Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
SEHK:1775 CEO Compensation December 7th 2022BExcellent Group Holdings Limited's Growth
Over the last three years, BExcellent Group Holdings Limited has shrunk its earnings per share by 59% per year. In the last year, its revenue is down 20%.
Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. 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 BExcellent Group Holdings Limited Been A Good Investment?
Given the total shareholder loss of 18% over three years, many shareholders in BExcellent Group Holdings Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
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, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for BExcellent Group Holdings (1 shouldn't be ignored!) that you should be aware of before investing here.
Important note: BExcellent Group Holdings 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.