Key Insights

• Baiying Holdings Group to hold its Annual General Meeting on 27th of June
• Total pay for CEO Dake Huang includes CN¥668.2k salary
• The overall pay is 46% below the industry average
• Over the past three years, Baiying Holdings Group's EPS fell by 83% and over the past three years, the total loss to shareholders 1.1%

Performance at Baiying Holdings Group Limited (HKG:8525) has been rather uninspiring recently and shareholders may be wondering how CEO Dake Huang plans to fix this. At the next AGM coming up on 27th of June, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Comparing Baiying Holdings Group Limited's CEO Compensation With The Industry

According to our data, Baiying Holdings Group Limited has a market capitalization of HK$124m, and paid its CEO total annual compensation worth CN¥763k over the year to December 2023. That's a fairly small increase of 5.0% over the previous year. In particular, the salary of CN¥668.2k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Hong Kong Diversified Financial industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥1.4m. Accordingly, Baiying Holdings Group pays its CEO under the industry median. Furthermore, Dake Huang directly owns HK$5.7m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. It's interesting to note that Baiying Holdings Group pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Baiying Holdings Group Limited's Growth Numbers

Over the last three years, Baiying Holdings Group Limited has shrunk its earnings per share by 83% per year. In the last year, its revenue is up 42%.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Baiying Holdings Group Limited Been A Good Investment?

Given the total shareholder loss of 1.1% over three years, many shareholders in Baiying Holdings Group Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders will be disappointed with the share price performance as they go into the AGM. It may be to do with the fact that earnings have not grown at all in the last few years. Shareholders will get the chance to question the board on key concerns and revisit their investment thesis with regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Baiying Holdings Group you should be aware of, and 1 of them shouldn't be ignored.

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.

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