Key Insights

• Tycoon Group Holdings will host its Annual General Meeting on 31st of May
• Total pay for CEO Michael Wong includes HK$3.11m salary
• The total compensation is similar to the average for the industry
• Tycoon Group Holdings' total shareholder return over the past three years was 138% while its EPS grew by 132% over the past three years

The performance at Tycoon Group Holdings Limited (HKG:3390) has been quite strong recently and CEO Michael Wong has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 31st of May. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

How Does Total Compensation For Michael Wong Compare With Other Companies In The Industry?

Our data indicates that Tycoon Group Holdings Limited has a market capitalization of HK$3.2b, and total annual CEO compensation was reported as HK$3.3m for the year to December 2023. That's a fairly small increase of 5.1% over the previous year. Notably, the salary which is HK$3.11m, represents most of the total compensation being paid.

On examining similar-sized companies in the Hong Kong Healthcare industry with market capitalizations between HK$1.6b and HK$6.3b, we discovered that the median CEO total compensation of that group was HK$3.0m. This suggests that Tycoon Group Holdings remunerates its CEO largely in line with the industry average. Moreover, Michael Wong also holds HK$985m worth of Tycoon Group Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 72% of total compensation represents salary and 28% is other remuneration. It's interesting to note that Tycoon Group Holdings pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Tycoon Group Holdings Limited's Growth Numbers

Tycoon Group Holdings Limited's earnings per share (EPS) grew 132% per year over the last three years. Its revenue is up 1.1% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Tycoon Group Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 138% over three years, Tycoon Group Holdings 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.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term 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 1 warning sign for Tycoon Group Holdings that you should be aware of before investing.

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.