Key Insights

• Grand Brilliance Group Holdings to hold its Annual General Meeting on 15th of September
• Total pay for CEO Bikie Wong includes HK$2.99m salary
• The overall pay is 154% above the industry average
• Over the past three years, Grand Brilliance Group Holdings' EPS fell by 11% and over the past three years, the total shareholder return was 3.7%

Share price growth at Grand Brilliance Group Holdings Limited (HKG:8372) has remained rather flat over the last few years and it may be because earnings has struggled to grow at all. Some of these issues will occupy shareholders' minds as the AGM rolls around on 15th of September. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

See our latest analysis for Grand Brilliance Group Holdings

How Does Total Compensation For Bikie Wong Compare With Other Companies In The Industry?

Our data indicates that Grand Brilliance Group Holdings Limited has a market capitalization of HK$58m, and total annual CEO compensation was reported as HK$4.2m for the year to March 2023. That is, the compensation was roughly the same as last year. Notably, the salary which is HK$2.99m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Healthcare industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.7m. Hence, we can conclude that Bikie Wong is remunerated higher than the industry median. What's more, Bikie Wong holds HK$41m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 80% of total compensation represents salary and 20% is other remuneration. Grand Brilliance Group Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Grand Brilliance Group Holdings Limited's Growth

Over the last three years, Grand Brilliance Group Holdings Limited has shrunk its earnings per share by 11% per year. In the last year, its revenue is up 11%.

The decline in EPS is a bit concerning. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that EPS has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Grand Brilliance Group Holdings Limited Been A Good Investment?

Grand Brilliance Group Holdings Limited has not done too badly by shareholders, with a total return of 3.7%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

The lacklustre share price returns along with the lack of earnings growth makes us think that a strong rebound in the share price may be difficult. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for Grand Brilliance Group Holdings you should be aware of, and 1 of them is a bit unpleasant.

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.