Key Insights

• Jiande International Holdings to hold its Annual General Meeting on 6th of June
• Salary of CN¥543.0k is part of CEO Kin Sze Tsoi's total remuneration
• Total compensation is 67% below industry average
• Over the past three years, Jiande International Holdings' EPS fell by 64% and over the past three years, the total loss to shareholders 72%

Performance at Jiande International Holdings Limited (HKG:865) has not been particularly rosy recently and shareholders will likely be holding CEO Kin Sze Tsoi and the board accountable for this. At the upcoming AGM on 6th of June, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

Comparing Jiande International Holdings Limited's CEO Compensation With The Industry

Our data indicates that Jiande International Holdings Limited has a market capitalization of HK$128m, and total annual CEO compensation was reported as CN¥559k for the year to December 2023. That's a modest increase of 5.1% on the prior year. Notably, the salary which is CN¥543.0k, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Real Estate industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.7m. In other words, Jiande International Holdings pays its CEO lower than the industry median. Moreover, Kin Sze Tsoi also holds HK$39m worth of Jiande International Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 77% of total compensation represents salary, while the remainder of 23% is other remuneration. Investors will find it interesting that Jiande International Holdings pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. 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 Jiande International Holdings Limited's Growth Numbers

Jiande International Holdings Limited has reduced its earnings per share by 64% a year over the last three years. Its revenue is up 6.2% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. 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 Jiande International Holdings Limited Been A Good Investment?

The return of -72% over three years would not have pleased Jiande International Holdings Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Kin Sze receives almost all of their compensation through a salary. 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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

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 Jiande International Holdings that you should be aware of before investing.

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.