Key Insights

• Honma Golf's Annual General Meeting to take place on 15th of September
• CEO Jianguo Liu's total compensation includes salary of JP¥32.4m
• Total compensation is 38% above industry average
• Over the past three years, Honma Golf's EPS grew by 76% and over the past three years, the total shareholder return was 19%

Under the guidance of CEO Jianguo Liu, Honma Golf Limited (HKG:6858) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 15th of September. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Honma Golf

How Does Total Compensation For Jianguo Liu Compare With Other Companies In The Industry?

Our data indicates that Honma Golf Limited has a market capitalization of HK$2.0b, and total annual CEO compensation was reported as JP¥35m for the year to March 2023. Notably, that's an increase of 14% over the year before. Notably, the salary which is JP¥32.4m, represents most of the total compensation being paid.

On examining similar-sized companies in the Hong Kong Leisure industry with market capitalizations between HK$784m and HK$3.1b, we discovered that the median CEO total compensation of that group was JP¥25m. Hence, we can conclude that Jianguo Liu is remunerated higher than the industry median. Moreover, Jianguo Liu also holds HK$761m worth of Honma Golf stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 93% of total compensation represents salary, while the remainder of 7% is other remuneration. There isn't a significant difference between Honma Golf and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Honma Golf Limited's Growth Numbers

Over the past three years, Honma Golf Limited has seen its earnings per share (EPS) grow by 76% per year. In the last year, its revenue is up 1.8%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Honma Golf Limited Been A Good Investment?

With a total shareholder return of 19% over three years, Honma Golf Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Honma Golf that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.