Key Insights

• Hevol Services Group will host its Annual General Meeting on 31st of May
• Salary of CN¥928.0k is part of CEO Wenhao Wang's total remuneration
• The total compensation is 36% less than the average for the industry
• Hevol Services Group's EPS grew by 2.9% over the past three years while total shareholder loss over the past three years was 58%

The performance at Hevol Services Group Co. Limited (HKG:6093) has been rather lacklustre of late and shareholders may be wondering what CEO Wenhao Wang is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 31st of May. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

How Does Total Compensation For Wenhao Wang Compare With Other Companies In The Industry?

According to our data, Hevol Services Group Co. Limited has a market capitalization of HK$840m, and paid its CEO total annual compensation worth CN¥1.1m over the year to December 2023. We note that's an increase of 11% above last year. We note that the salary portion, which stands at CN¥928.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Hong Kong Real Estate industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥1.7m. This suggests that Wenhao Wang is paid below the industry median.

On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. Hevol Services Group pays out 86% of remuneration in the form of a salary, significantly higher than the industry average. 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 Hevol Services Group Co. Limited's Growth Numbers

Hevol Services Group Co. Limited's earnings per share (EPS) grew 2.9% per year over the last three years. It achieved revenue growth of 26% over the last year.

It's great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. We wouldn't say this is necessarily top notch growth, but it is certainly promising. 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 Hevol Services Group Co. Limited Been A Good Investment?

The return of -58% over three years would not have pleased Hevol Services Group Co. Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders have earned a negative share price return is certainly disconcerting. The lacklustre earnings growth perhaps may have something to do with the downward trend in the share price. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

Shareholders may want to check for free if Hevol Services Group insiders are buying or selling shares.

Switching gears from Hevol Services Group, 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.