Key Insights

• Zhongtai Futures' Annual General Meeting to take place on 27th of June
• Salary of CN¥829.9k is part of CEO Qingbin Liu's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Zhongtai Futures' EPS grew by 33% and over the past three years, the total shareholder return was 1.9%

CEO Qingbin Liu has done a decent job of delivering relatively good performance at Zhongtai Futures Company Limited (HKG:1461) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 27th of June. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Comparing Zhongtai Futures Company Limited's CEO Compensation With The Industry

Our data indicates that Zhongtai Futures Company Limited has a market capitalization of HK$491m, and total annual CEO compensation was reported as CN¥1.8m for the year to December 2023. Notably, that's an increase of 42% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥830k.

On comparing similar-sized companies in the Hong Kong Capital Markets industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥2.0m. From this we gather that Qingbin Liu is paid around the median for CEOs in the industry.

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. Zhongtai Futures pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Zhongtai Futures Company Limited's Growth

Over the past three years, Zhongtai Futures Company Limited has seen its earnings per share (EPS) grow by 33% per year. Its revenue is down 12% 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. 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 Zhongtai Futures Company Limited Been A Good Investment?

With a total shareholder return of 1.9% over three years, Zhongtai Futures Company Limited has done okay by shareholders, but there's always room for improvement. 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...

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Zhongtai Futures that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.

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