Key Insights

• KPa-BM Holdings' Annual General Meeting to take place on 21st of August
• Salary of HK$3.63m is part of CEO Yat Kin Wai's total remuneration
• The overall pay is 240% above the industry average
• KPa-BM Holdings' total shareholder return over the past three years was 38% while its EPS was down 0.1% over the past three years

Performance at KPa-BM Holdings Limited (HKG:2663) has been reasonably good and CEO Yat Kin Wai has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 21st of August. However, some shareholders will still be cautious of paying the CEO excessively.

How Does Total Compensation For Yat Kin Wai Compare With Other Companies In The Industry?

According to our data, KPa-BM Holdings Limited has a market capitalization of HK$234m, and paid its CEO total annual compensation worth HK$7.6m over the year to March 2024. We note that's an increase of 38% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at HK$3.6m.

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$2.3m. Hence, we can conclude that Yat Kin Wai is remunerated higher than the industry median. Furthermore, Yat Kin Wai directly owns HK$17m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. It's interesting to note that KPa-BM Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at KPa-BM Holdings Limited's Growth Numbers

Over the last three years, KPa-BM Holdings Limited has not seen its earnings per share change much, though they have deteriorated slightly. It achieved revenue growth of 17% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has KPa-BM Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with KPa-BM Holdings Limited for providing a total return of 38% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which can't be ignored) in KPa-BM Holdings we think you should know about.

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.