Key Insights

• Yeebo (International Holdings) to hold its Annual General Meeting on 16th of August
• CEO Frankie Li's total compensation includes salary of HK$5.08m
• Total compensation is 31% below industry average
• Over the past three years, Yeebo (International Holdings)'s EPS fell by 0.5% and over the past three years, the total shareholder return was 9.7%

The performance at Yeebo (International Holdings) Limited (HKG:259) has been rather lacklustre of late and shareholders may be wondering what CEO Frankie Li is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 16th of August. 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 think CEO compensation looks appropriate given the data we have put together.

Comparing Yeebo (International Holdings) Limited's CEO Compensation With The Industry

According to our data, Yeebo (International Holdings) Limited has a market capitalization of HK$2.6b, and paid its CEO total annual compensation worth HK$5.3m over the year to March 2024. This was the same amount the CEO received in the prior year. We note that the salary portion, which stands at HK$5.08m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Electronic industry with market capitalizations ranging between HK$1.6b and HK$6.2b had a median total CEO compensation of HK$7.7m. In other words, Yeebo (International Holdings) pays its CEO lower than the industry median. Furthermore, Frankie Li directly owns HK$305m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. Yeebo (International Holdings) pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Yeebo (International Holdings) Limited's Growth Numbers

Earnings per share at Yeebo (International Holdings) Limited are much the same as they were three years ago, albeit slightly lower. In the last year, its revenue is down 29%.

Its a bit disappointing to see that the company has failed to grow its EPS. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Yeebo (International Holdings) Limited Been A Good Investment?

Yeebo (International Holdings) Limited has not done too badly by shareholders, with a total return of 9.7%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Frankie receives almost all of their compensation through a salary. Shareholder returns while positive, need to be looked at along with earnings, which have failed to grow and this could mean that the current momentum may not continue. These are are some concerns that shareholders may want to address the board when they revisit their investment thesis.

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 1 warning sign for Yeebo (International Holdings) that you should be aware of before investing.

Switching gears from Yeebo (International 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.