Key Insights

• Kader Holdings will host its Annual General Meeting on 20th of June
• CEO Kenneth Ting's total compensation includes salary of HK$600.0k
• The overall pay is 57% below the industry average
• Kader Holdings' EPS declined by 23% over the past three years while total shareholder loss over the past three years was 20%

The disappointing performance at Kader Holdings Company Limited (HKG:180) will make some shareholders rather disheartened. The next AGM coming up on 20th of June will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. The data we gathered below shows that CEO compensation looks acceptable for now.

Comparing Kader Holdings Company Limited's CEO Compensation With The Industry

According to our data, Kader Holdings Company Limited has a market capitalization of HK$314m, and paid its CEO total annual compensation worth HK$760k over the year to December 2023. That's a slight decrease of 6.2% on the prior year. In particular, the salary of HK$600.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Hong Kong Leisure industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.8m. That is to say, Kenneth Ting is paid under the industry median. What's more, Kenneth Ting holds HK$95m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 92% of total compensation represents salary, while the remainder of 8% is other remuneration. Kader Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Kader Holdings Company Limited's Growth

Kader Holdings Company Limited has reduced its earnings per share by 23% a year over the last three years. It achieved revenue growth of 8.7% over the last year.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Kader Holdings Company Limited Been A Good Investment?

With a three year total loss of 20% for the shareholders, Kader Holdings Company Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Kader Holdings (2 are significant!) that you should be aware of before investing here.

Important note: Kader 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.

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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.