Key Insights

• Pak Fah Yeow International to hold its Annual General Meeting on 13th of June
• CEO Wee Sean Gan's total compensation includes salary of HK$4.83m
• Total compensation is 46% above industry average
• Pak Fah Yeow International's EPS grew by 83% over the past three years while total shareholder return over the past three years was 55%

CEO Wee Sean Gan has done a decent job of delivering relatively good performance at Pak Fah Yeow International Limited (HKG:239) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 13th of June. However, some shareholders will still be cautious of paying the CEO excessively.

Comparing Pak Fah Yeow International Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Pak Fah Yeow International Limited has a market capitalization of HK$767m, and reported total annual CEO compensation of HK$7.9m for the year to December 2023. We note that's an increase of 14% above last year. In particular, the salary of HK$4.83m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Pharmaceuticals industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$5.4m. Hence, we can conclude that Wee Sean Gan is remunerated higher than the industry median. Furthermore, Wee Sean Gan directly owns HK$233m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. Although there is a difference in how total compensation is set, Pak Fah Yeow International more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Pak Fah Yeow International Limited's Growth Numbers

Pak Fah Yeow International Limited's earnings per share (EPS) grew 83% per year over the last three years. In the last year, its revenue is up 76%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Pak Fah Yeow International Limited Been A Good Investment?

Boasting a total shareholder return of 55% over three years, Pak Fah Yeow International Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Pak Fah Yeow International that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.