Key Insights

• Gemilang International to hold its Annual General Meeting on 17th of March
• Salary of US$265.0k is part of CEO Chong Yong Pang's total remuneration
• The overall pay is 103% above the industry average
• Over the past three years, Gemilang International's EPS fell by 94% and over the past three years, the total loss to shareholders 67%

Gemilang International Limited (HKG:6163) has not performed well recently and CEO Chong Yong Pang will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 17th of March. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Gemilang International

How Does Total Compensation For Chong Yong Pang Compare With Other Companies In The Industry?

According to our data, Gemilang International Limited has a market capitalization of HK$98m, and paid its CEO total annual compensation worth US$683k over the year to October 2022. That's a notable increase of 30% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$265k.

On comparing similar-sized companies in the Hong Kong Machinery industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was US$336k. Hence, we can conclude that Chong Yong Pang is remunerated higher than the industry median. Furthermore, Chong Yong Pang directly owns HK$34m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 74% of total compensation represents salary and 26% is other remuneration. Gemilang International sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Gemilang International Limited's Growth Numbers

Over the last three years, Gemilang International Limited has shrunk its earnings per share by 94% per year. It saw its revenue drop 18% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Gemilang International Limited Been A Good Investment?

Few Gemilang International Limited shareholders would feel satisfied with the return of -67% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO 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.

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 3 warning signs for Gemilang International you should be aware of, and 2 of them don't sit too well with us.

Switching gears from Gemilang International, 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.