Key Insights

• Anxian Yuan China Holdings will host its Annual General Meeting on 9th of September
• Salary of HK$1.32m is part of CEO Jun Shi's total remuneration
• Total compensation is similar to the industry average
• Anxian Yuan China Holdings' EPS declined by 16% over the past three years while total shareholder loss over the past three years was 2.6%

Shareholders will probably not be too impressed with the underwhelming results at Anxian Yuan China Holdings Limited (HKG:922) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 9th of September. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Comparing Anxian Yuan China Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Anxian Yuan China Holdings Limited has a market capitalization of HK$369m, and reported total annual CEO compensation of HK$1.4m for the year to March 2024. This was the same amount the CEO received in the prior year. We note that the salary portion, which stands at HK$1.32m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Consumer Services industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.9m. From this we gather that Jun Shi is paid around the median for CEOs in the industry. What's more, Jun Shi holds HK$5.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. Although there is a difference in how total compensation is set, Anxian Yuan China Holdings more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Anxian Yuan China Holdings Limited's Growth

Over the last three years, Anxian Yuan China Holdings Limited has shrunk its earnings per share by 16% per year. Its revenue is down 16% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Anxian Yuan China Holdings Limited Been A Good Investment?

Since shareholders would have lost about 2.6% over three years, some Anxian Yuan China Holdings Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Anxian Yuan China Holdings that you should be aware of before investing.

Switching gears from Anxian Yuan China 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.

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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.