Key Insights

• Yee Hop Holdings will host its Annual General Meeting on 27th of September
• CEO Andrew Yan's total compensation includes salary of HK$1.60m
• Total compensation is similar to the industry average
• Yee Hop Holdings' three-year loss to shareholders was 66% while its EPS was down 21% over the past three years

The results at Yee Hop Holdings Limited (HKG:1662) have been quite disappointing recently and CEO Andrew Yan bears some responsibility for this. At the upcoming AGM on 27th of September, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Yee Hop Holdings

Comparing Yee Hop Holdings Limited's CEO Compensation With The Industry

Our data indicates that Yee Hop Holdings Limited has a market capitalization of HK$525m, and total annual CEO compensation was reported as HK$2.2m for the year to March 2023. That's a notable increase of 17% on last year. In particular, the salary of HK$1.60m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Hong Kong Construction industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.1m. This suggests that Yee Hop Holdings remunerates its CEO largely in line with the industry average.

On an industry level, around 88% of total compensation represents salary and 12% is other remuneration. Yee Hop Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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.

A Look at Yee Hop Holdings Limited's Growth Numbers

Yee Hop Holdings Limited has reduced its earnings per share by 21% a year over the last three years. It saw its revenue drop 3.8% over the last year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Yee Hop Holdings Limited Been A Good Investment?

Few Yee Hop Holdings Limited shareholders would feel satisfied with the return of -66% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 4 warning signs for Yee Hop Holdings (1 can't be ignored!) that you should be aware of before investing here.

Switching gears from Yee Hop 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.