Key Insights

• Twintek Investment Holdings will host its Annual General Meeting on 20th of August
• CEO Wing Cheung Lo's total compensation includes salary of HK$3.17m
• The total compensation is 53% higher than the average for the industry
• Twintek Investment Holdings' three-year loss to shareholders was 24% while its EPS was down 110% over the past three years

Twintek Investment Holdings Limited (HKG:6182) has not performed well recently and CEO Wing Cheung Lo will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 20th of August. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Comparing Twintek Investment Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Twintek Investment Holdings Limited has a market capitalization of HK$121m, and reported total annual CEO compensation of HK$3.4m for the year to March 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is HK$3.17m, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Construction industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.2m. Accordingly, our analysis reveals that Twintek Investment Holdings Limited pays Wing Cheung Lo north of the industry median.

On an industry level, around 84% of total compensation represents salary and 16% is other remuneration. Twintek Investment Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Twintek Investment Holdings Limited's Growth

Twintek Investment Holdings Limited has reduced its earnings per share by 110% a year over the last three years. In the last year, its revenue is down 46%.

Overall this is not a very positive result for shareholders. 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. 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 Twintek Investment Holdings Limited Been A Good Investment?

Given the total shareholder loss of 24% over three years, many shareholders in Twintek Investment Holdings Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Twintek Investment Holdings (1 is significant!) that you should be aware of before investing here.

Switching gears from Twintek Investment 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.