Key Insights

• Sun Hing Printing Holdings to hold its Annual General Meeting on 21st of November
• CEO Kenneth Chan's total compensation includes salary of HK$17.5m
• The total compensation is 853% higher than the average for the industry
• Over the past three years, Sun Hing Printing Holdings' EPS grew by 20% and over the past three years, the total shareholder return was 63%

Under the guidance of CEO Kenneth Chan, Sun Hing Printing Holdings Limited (HKG:1975) has performed reasonably well recently. As shareholders go into the upcoming AGM on 21st of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Sun Hing Printing Holdings

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

According to our data, Sun Hing Printing Holdings Limited has a market capitalization of HK$350m, and paid its CEO total annual compensation worth HK$18m over the year to June 2023. We note that's an increase of 24% above last year. We note that the salary portion, which stands at HK$17.5m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Commercial Services industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.9m. Accordingly, our analysis reveals that Sun Hing Printing Holdings Limited pays Kenneth Chan north of the industry median.

Talking in terms of the industry, salary represented approximately 79% of total compensation out of all the companies we analyzed, while other remuneration made up 21% of the pie. Sun Hing Printing Holdings has gone down a largely traditional route, paying Kenneth Chan a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Sun Hing Printing Holdings Limited's Growth Numbers

Sun Hing Printing Holdings Limited's earnings per share (EPS) grew 20% per year over the last three years. Its revenue is down 19% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Sun Hing Printing Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Sun Hing Printing Holdings Limited for providing a total return of 63% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Kenneth receives almost all of their compensation through a salary. 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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Sun Hing Printing Holdings that you should be aware of before investing.

Switching gears from Sun Hing Printing 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.