Key Insights

• B & S International Holdings to hold its Annual General Meeting on 19th of September
• Total pay for CEO Andrew Chan includes HK$950.0k salary
• The overall pay is 53% below the industry average
• B & S International Holdings' three-year loss to shareholders was 8.7% while its EPS grew by 193% over the past three years

The performance at B & S International Holdings Ltd. (HKG:1705) has been rather lacklustre of late and shareholders may be wondering what CEO Andrew Chan is planning to do about this. At the next AGM coming up on 19th of September, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out our latest analysis for B & S International Holdings

How Does Total Compensation For Andrew Chan Compare With Other Companies In The Industry?

Our data indicates that B & S International Holdings Ltd. has a market capitalization of HK$130m, and total annual CEO compensation was reported as HK$968k for the year to March 2023. That's a notable increase of 11% on last year. In particular, the salary of HK$950.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Hong Kong Consumer Retailing industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.1m. That is to say, Andrew Chan is paid under the industry median. Furthermore, Andrew Chan directly owns HK$33m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. Investors will find it interesting that B & S International Holdings pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

B & S International Holdings Ltd.'s Growth

B & S International Holdings Ltd. has seen its earnings per share (EPS) increase by 193% a year over the past three years. In the last year, its revenue is up 4.0%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 B & S International Holdings Ltd. Been A Good Investment?

Given the total shareholder loss of 8.7% over three years, many shareholders in B & S International Holdings Ltd. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

B & S International Holdings pays its CEO a majority of compensation through a salary. The lacklustre share price returns is rather divergent to the robust growth in EPS, suggesting that there may be other factors weighing on it apart from fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board and assess if the board's plan is likely to improve company performance.

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 4 warning signs for B & S International Holdings you should be aware of, and 1 of them can't be ignored.

Switching gears from B & S International Holdings, 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.