Key Insights

• Central New Energy Holding Group will host its Annual General Meeting on 28th of June
• Total pay for CEO Zhuyun Yu includes HK$600.0k salary
• Total compensation is 73% below industry average
• Central New Energy Holding Group's EPS grew by 13% over the past three years while total shareholder return over the past three years was 877%

The solid performance at Central New Energy Holding Group Limited (HKG:1735) has been impressive and shareholders will probably be pleased to know that CEO Zhuyun Yu has delivered. This would be kept in mind at the upcoming AGM on 28th of June which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Comparing Central New Energy Holding Group Limited's CEO Compensation With The Industry

According to our data, Central New Energy Holding Group Limited has a market capitalization of HK$36b, and paid its CEO total annual compensation worth HK$618k over the year to December 2023. There was no change in the compensation compared to last year. Notably, the salary which is HK$600.0k, represents most of the total compensation being paid.

On examining similar-sized companies in the Hong Kong Construction industry with market capitalizations between HK$16b and HK$50b, we discovered that the median CEO total compensation of that group was HK$2.3m. That is to say, Zhuyun Yu is paid under the industry median. Furthermore, Zhuyun Yu directly owns HK$25b worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 83% of total compensation out of all the companies we analyzed, while other remuneration made up 17% of the pie. Central New Energy Holding Group is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Central New Energy Holding Group Limited's Growth Numbers

Central New Energy Holding Group Limited has seen its earnings per share (EPS) increase by 13% a year over the past three years. In the last year, its revenue is up 150%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Central New Energy Holding Group Limited Been A Good Investment?

Boasting a total shareholder return of 877% over three years, Central New Energy Holding Group Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Zhuyun receives almost all of their compensation through a salary. Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which is potentially serious) in Central New Energy Holding Group we think you should know about.

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.

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