Key Insights

• Paliburg Holdings' Annual General Meeting to take place on 13th of June
• Total pay for CEO Yuk Sui Lo includes HK$14.1m salary
• The total compensation is 658% higher than the average for the industry
• Over the past three years, Paliburg Holdings' EPS fell by 14% and over the past three years, the total loss to shareholders 64%

Shareholders will probably not be too impressed with the underwhelming results at Paliburg Holdings Limited (HKG:617) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 13th of June. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Comparing Paliburg Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Paliburg Holdings Limited has a market capitalization of HK$847m, and reported total annual CEO compensation of HK$16m for the year to December 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of HK$14.1m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Hospitality industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.1m. Accordingly, our analysis reveals that Paliburg Holdings Limited pays Yuk Sui Lo north of the industry median. Moreover, Yuk Sui Lo also holds HK$92m worth of Paliburg 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 87% of total compensation represents salary and 13% is other remuneration. There isn't a significant difference between Paliburg Holdings and the broader market, in terms of salary allocation in the overall compensation package. 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.

A Look at Paliburg Holdings Limited's Growth Numbers

Over the last three years, Paliburg Holdings Limited has shrunk its earnings per share by 14% per year. It saw its revenue drop 30% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Paliburg Holdings Limited Been A Good Investment?

Few Paliburg Holdings Limited shareholders would feel satisfied with the return of -64% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Paliburg Holdings that investors should look into moving forward.

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.