Key Insights

• ZACD Group will host its Annual General Meeting on 24th of April
• Total pay for CEO Stanley Yeo includes S$598.0k salary
• The total compensation is 50% higher than the average for the industry
• ZACD Group's EPS grew by 87% over the past three years while total shareholder loss over the past three years was 50%

In the past three years, the share price of ZACD Group Ltd. (HKG:8313) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 24th of April. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

How Does Total Compensation For Stanley Yeo Compare With Other Companies In The Industry?

According to our data, ZACD Group Ltd. has a market capitalization of HK$60m, and paid its CEO total annual compensation worth S$616k over the year to December 2023. Notably, that's an increase of 49% over the year before. We note that the salary portion, which stands at S$598.0k constitutes the majority of total compensation received by the CEO.

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 S$410k. Hence, we can conclude that Stanley Yeo is remunerated higher than the industry median.

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. ZACD Group pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ZACD Group Ltd.'s Growth

ZACD Group Ltd.'s earnings per share (EPS) grew 87% per year over the last three years. It achieved revenue growth of 117% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 ZACD Group Ltd. Been A Good Investment?

With a total shareholder return of -50% over three years, ZACD Group Ltd. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Stanley receives almost all of their compensation through a salary. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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 ZACD Group that you should be aware of before investing.

Switching gears from ZACD Group, 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.