Key Insights

• Eggriculture Foods' Annual General Meeting to take place on 23rd of August
• CEO Chin Chew Ma's total compensation includes salary of S$900.0k
• The overall pay is 255% above the industry average
• Eggriculture Foods' total shareholder return over the past three years was 53% while its EPS grew by 37% over the past three years

CEO Chin Chew Ma has done a decent job of delivering relatively good performance at Eggriculture Foods Ltd. (HKG:8609) recently. As shareholders go into the upcoming AGM on 23rd of August, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

Comparing Eggriculture Foods Ltd.'s CEO Compensation With The Industry

According to our data, Eggriculture Foods Ltd. has a market capitalization of HK$245m, and paid its CEO total annual compensation worth S$1.2m over the year to March 2024. That's a notable increase of 14% on last year. Notably, the salary which is S$900.0k, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Food industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of S$328k. Accordingly, our analysis reveals that Eggriculture Foods Ltd. pays Chin Chew Ma north of the industry median. Moreover, Chin Chew Ma also holds HK$144m worth of Eggriculture Foods stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. There isn't a significant difference between Eggriculture Foods and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Eggriculture Foods Ltd.'s Growth

Over the past three years, Eggriculture Foods Ltd. has seen its earnings per share (EPS) grow by 37% per year. Its revenue is up 13% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Eggriculture Foods Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Eggriculture Foods Ltd. for providing a total return of 53% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Eggriculture Foods you should be aware of, and 1 of them shouldn't be ignored.

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.