Key Insights

• Leeport (Holdings) will host its Annual General Meeting on 26th of June
• CEO Joseph Lee's total compensation includes salary of HK$1.20m
• The overall pay is 32% above the industry average
• Leeport (Holdings)'s EPS grew by 36% over the past three years while total shareholder return over the past three years was 9.0%

CEO Joseph Lee has done a decent job of delivering relatively good performance at Leeport (Holdings) Limited (HKG:387) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 26th of June. However, some shareholders will still be cautious of paying the CEO excessively.

How Does Total Compensation For Joseph Lee Compare With Other Companies In The Industry?

At the time of writing, our data shows that Leeport (Holdings) Limited has a market capitalization of HK$191m, and reported total annual CEO compensation of HK$3.0m for the year to December 2023. We note that's a decrease of 10% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$1.2m.

For comparison, other companies in the Hong Kong Trade Distributors industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.3m. Accordingly, our analysis reveals that Leeport (Holdings) Limited pays Joseph Lee north of the industry median. What's more, Joseph Lee holds HK$22m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 92% of total compensation represents salary and 8% is other remuneration. Leeport (Holdings) sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Leeport (Holdings) Limited's Growth Numbers

Over the past three years, Leeport (Holdings) Limited has seen its earnings per share (EPS) grow by 36% per year. It saw its revenue drop 20% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Leeport (Holdings) Limited Been A Good Investment?

Leeport (Holdings) Limited has generated a total shareholder return of 9.0% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 3 warning signs for Leeport (Holdings) that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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