Key Insights

• Chinney Kin Wing Holdings will host its Annual General Meeting on 7th of June
• Salary of HK$6.75m is part of CEO Johnny Yu's total remuneration
• The total compensation is 965% higher than the average for the industry
• Chinney Kin Wing Holdings' total shareholder return over the past three years was 75% while its EPS grew by 16% over the past three years

Under the guidance of CEO Johnny Yu, Chinney Kin Wing Holdings Limited (HKG:1556) has performed reasonably well recently. As shareholders go into the upcoming AGM on 7th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

Comparing Chinney Kin Wing Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Chinney Kin Wing Holdings Limited has a market capitalization of HK$428m, and reported total annual CEO compensation of HK$23m for the year to December 2023. We note that's an increase of 76% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$6.8m.

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$2.2m. Hence, we can conclude that Johnny Yu is remunerated higher than the industry median. Moreover, Johnny Yu also holds HK$1.4m worth of Chinney Kin Wing Holdings stock directly under their own name.

Speaking on an industry level, nearly 83% of total compensation represents salary, while the remainder of 17% is other remuneration. It's interesting to note that Chinney Kin Wing Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Chinney Kin Wing Holdings Limited's Growth Numbers

Chinney Kin Wing Holdings Limited's earnings per share (EPS) grew 16% per year over the last three years. It achieved revenue growth of 18% 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 decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Chinney Kin Wing Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Chinney Kin Wing Holdings Limited for providing a total return of 75% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Chinney Kin Wing Holdings that investors should be aware of in a dynamic business environment.

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.