Key Insights

• G & M Holdings' Annual General Meeting to take place on 19th of June
• Salary of HK$3.44m is part of CEO Chi Hung Lee's total remuneration
• The total compensation is 158% higher than the average for the industry
• G & M Holdings' total shareholder return over the past three years was 112% while its EPS grew by 35% over the past three years

Under the guidance of CEO Chi Hung Lee, G & M Holdings Limited (HKG:6038) has performed reasonably well recently. As shareholders go into the upcoming AGM on 19th 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 G & M Holdings Limited's CEO Compensation With The Industry

Our data indicates that G & M Holdings Limited has a market capitalization of HK$260m, and total annual CEO compensation was reported as HK$5.6m for the year to December 2023. Notably, that's an increase of 12% over the year before. We note that the salary portion, which stands at HK$3.44m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Construction industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.2m. This suggests that Chi Hung Lee is paid more than the median for the industry.

Speaking on an industry level, nearly 83% of total compensation represents salary, while the remainder of 17% is other remuneration. G & M Holdings sets aside a smaller share of compensation for salary, in comparison to the overall 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 G & M Holdings Limited's Growth Numbers

Over the past three years, G & M Holdings Limited has seen its earnings per share (EPS) grow by 35% per year. Its revenue is up 30% 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. 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 G & M Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 112% over three years, G & M 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.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for G & M Holdings that you should be aware of before investing.

Important note: G & M Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.