Key Insights

• Anchorstone Holdings' Annual General Meeting to take place on 28th of June
• CEO Gary Lui's total compensation includes salary of HK$3.60m
• The total compensation is 75% higher than the average for the industry
• Anchorstone Holdings' EPS grew by 8.0% over the past three years while total shareholder loss over the past three years was 99%

The underwhelming share price performance of Anchorstone Holdings Limited (HKG:1592) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 28th of June. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

How Does Total Compensation For Gary Lui Compare With Other Companies In The Industry?

According to our data, Anchorstone Holdings Limited has a market capitalization of HK$75m, and paid its CEO total annual compensation worth HK$3.8m over the year to December 2023. That's slightly lower by 3.3% over the previous year. Notably, the salary which is HK$3.60m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Construction industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.2m. Hence, we can conclude that Gary Lui is remunerated higher than the industry median. Moreover, Gary Lui also holds HK$65m worth of Anchorstone Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 83% of total compensation out of all the companies we analyzed, while other remuneration made up 17% of the pie. Anchorstone 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 Anchorstone Holdings Limited's Growth Numbers

Over the past three years, Anchorstone Holdings Limited has seen its earnings per share (EPS) grow by 8.0% per year. In the last year, its revenue is down 41%.

We would prefer it if there was revenue growth, but the modest EPS growth gives us some relief. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Anchorstone Holdings Limited Been A Good Investment?

With a total shareholder return of -99% over three years, Anchorstone Holdings Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Anchorstone Holdings pays its CEO a majority of compensation through a salary. The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Anchorstone Holdings (2 are a bit concerning!) that you should be aware of before investing here.

Switching gears from Anchorstone 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