Key Insights

• Kin Shing Holdings to hold its Annual General Meeting on 16th of August
• Total pay for CEO Dik Cheung Chow includes HK$1.11m salary
• The total compensation is 50% less than the average for the industry
• Kin Shing Holdings' EPS declined by 51% over the past three years while total shareholder loss over the past three years was 76%

Performance at Kin Shing Holdings Limited (HKG:1630) has been rather uninspiring recently and shareholders may be wondering how CEO Dik Cheung Chow plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 16th of August. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

Comparing Kin Shing Holdings Limited's CEO Compensation With The Industry

Our data indicates that Kin Shing Holdings Limited has a market capitalization of HK$38m, and total annual CEO compensation was reported as HK$1.1m for the year to March 2024. That's a modest increase of 4.0% on the prior year. We note that the salary portion, which stands at HK$1.11m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Construction industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.3m. In other words, Kin Shing Holdings pays its CEO lower than the industry median.

On an industry level, around 84% of total compensation represents salary and 16% is other remuneration. Kin Shing Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Kin Shing Holdings Limited's Growth

Over the last three years, Kin Shing Holdings Limited has shrunk its earnings per share by 51% per year. It achieved revenue growth of 162% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Kin Shing Holdings Limited Been A Good Investment?

With a total shareholder return of -76% over three years, Kin Shing Holdings Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Kin Shing Holdings pays its CEO a majority of compensation through a salary. The fact that shareholders have earned a negative share price return is certainly disconcerting. The poor performance of the share price might have something to do with the lack of earnings growth. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board's judgement and decision-making is aligned with their expectations.

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 Kin Shing Holdings that investors should think about before committing capital to this stock.

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.

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.