Key Insights

• Ajisen (China) Holdings to hold its Annual General Meeting on 13th of June
• CEO Wai Poon's total compensation includes salary of CN¥1.81m
• The overall pay is 60% below the industry average
• Ajisen (China) Holdings' three-year loss to shareholders was 9.3% while its EPS grew by 41% over the past three years

Shareholders may be wondering what CEO Wai Poon plans to do to improve the less than great performance at Ajisen (China) Holdings Limited (HKG:538) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 13th of June. 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 Wai Poon Compare With Other Companies In The Industry?

Our data indicates that Ajisen (China) Holdings Limited has a market capitalization of HK$1.2b, and total annual CEO compensation was reported as CN¥1.9m for the year to December 2023. That's a modest increase of 6.0% on the prior year. In particular, the salary of CN¥1.81m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Hospitality industry with market capitalizations ranging from HK$781m to HK$3.1b, the reported median CEO total compensation was CN¥4.8m. That is to say, Wai Poon is paid under the industry median. What's more, Wai Poon holds HK$43m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 87% of total compensation represents salary, while the remainder of 13% is other remuneration. Ajisen (China) 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.

Ajisen (China) Holdings Limited's Growth

Ajisen (China) Holdings Limited has seen its earnings per share (EPS) increase by 41% a year over the past three years. It achieved revenue growth of 27% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Ajisen (China) Holdings Limited Been A Good Investment?

Given the total shareholder loss of 9.3% over three years, many shareholders in Ajisen (China) Holdings Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Wai receives almost all of their compensation through a salary. Despite the strong EPS growth recently, the share price has not performed to expectations and it suggests that other factors might be driving it, apart from fundamentals. Shareholders will get the chance to question the board on key concerns and revisit their investment thesis with regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Ajisen (China) Holdings (1 is potentially serious!) that you should be aware of before investing here.

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.