Key Insights

• China Conch Venture Holdings to hold its Annual General Meeting on 25th of June
• Salary of CN¥601.0k is part of CEO Qinying Ji's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, China Conch Venture Holdings' EPS fell by 30% and over the past three years, the total loss to shareholders 72%

The results at China Conch Venture Holdings Limited (HKG:586) have been quite disappointing recently and CEO Qinying Ji bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 25th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Comparing China Conch Venture Holdings Limited's CEO Compensation With The Industry

Our data indicates that China Conch Venture Holdings Limited has a market capitalization of HK$11b, and total annual CEO compensation was reported as CN¥2.6m for the year to December 2023. We note that's a small decrease of 6.4% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CN¥601k.

On comparing similar companies from the Hong Kong Construction industry with market caps ranging from HK$7.8b to HK$25b, we found that the median CEO total compensation was CN¥2.3m. From this we gather that Qinying Ji is paid around the median for CEOs in the industry. Furthermore, Qinying Ji directly owns HK$215m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. It's interesting to note that China Conch Venture 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 China Conch Venture Holdings Limited's Growth Numbers

Over the last three years, China Conch Venture Holdings Limited has shrunk its earnings per share by 30% per year. It achieved revenue growth of 1.5% over the last year.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has China Conch Venture Holdings Limited Been A Good Investment?

With a total shareholder return of -72% over three years, China Conch Venture Holdings Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid 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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for China Conch Venture Holdings (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from China Conch Venture Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com