Key Insights

• Tristate Holdings' Annual General Meeting to take place on 24th of June
• Salary of HK$5.48m is part of CEO Peter Wang's total remuneration
• The overall pay is 359% above the industry average
• Tristate Holdings' EPS grew by 122% over the past three years while total shareholder return over the past three years was 200%

Under the guidance of CEO Peter Wang, Tristate Holdings Limited (HKG:458) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 24th of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Comparing Tristate Holdings Limited's CEO Compensation With The Industry

Our data indicates that Tristate Holdings Limited has a market capitalization of HK$751m, and total annual CEO compensation was reported as HK$9.3m for the year to December 2023. Notably, that's an increase of 44% over the year before. In particular, the salary of HK$5.48m, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Luxury industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.0m. Accordingly, our analysis reveals that Tristate Holdings Limited pays Peter Wang north of the industry median. Moreover, Peter Wang also holds HK$504m worth of Tristate Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 94% of total compensation represents salary and 6% is other remuneration. It's interesting to note that Tristate Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Tristate Holdings Limited's Growth

Over the past three years, Tristate Holdings Limited has seen its earnings per share (EPS) grow by 122% per year. It achieved revenue growth of 13% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Tristate Holdings Limited Been A Good Investment?

We think that the total shareholder return of 200%, over three years, would leave most Tristate Holdings Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Tristate Holdings that you should be aware of before investing.

Switching gears from Tristate 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