Key Insights

• Southeast Asia Properties & Finance will host its Annual General Meeting on 23rd of August
• CEO Nai Tuen Chua's total compensation includes salary of HK$4.54m
• The overall pay is 226% above the industry average
• Southeast Asia Properties & Finance's three-year loss to shareholders was 33% while its EPS grew by 108% over the past three years

In the past three years, the share price of Southeast Asia Properties & Finance Limited (HKG:252) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 23rd of August could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Comparing Southeast Asia Properties & Finance Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Southeast Asia Properties & Finance Limited has a market capitalization of HK$496m, and reported total annual CEO compensation of HK$4.6m for the year to March 2024. Notably, that's a decrease of 10% over the year before. Notably, the salary which is HK$4.54m, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Packaging industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.4m. Hence, we can conclude that Nai Tuen Chua is remunerated higher than the industry median. What's more, Nai Tuen Chua holds HK$10.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. Southeast Asia Properties & Finance 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 Southeast Asia Properties & Finance Limited's Growth Numbers

Southeast Asia Properties & Finance Limited has seen its earnings per share (EPS) increase by 108% a year over the past three years. In the last year, its revenue is down 19%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Southeast Asia Properties & Finance Limited Been A Good Investment?

The return of -33% over three years would not have pleased Southeast Asia Properties & Finance Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Southeast Asia Properties & Finance pays its CEO a majority of compensation through a salary. Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Southeast Asia Properties & Finance that investors should look into moving forward.

Switching gears from Southeast Asia Properties & Finance, 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.