Key Insights

• Ocean One Holding will host its Annual General Meeting on 22nd of August
• Total pay for CEO Tsan Fong Chan Chan includes HK$948.0k salary
• The overall pay is 61% below the industry average
• Over the past three years, Ocean One Holding's EPS grew by 14% and over the past three years, the total shareholder return was 217%

Shareholders will be pleased by the impressive results for Ocean One Holding Ltd. (HKG:8476) recently and CEO Tsan Fong Chan Chan has played a key role. At the upcoming AGM on 22nd of August, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

How Does Total Compensation For Tsan Fong Chan Chan Compare With Other Companies In The Industry?

Our data indicates that Ocean One Holding Ltd. has a market capitalization of HK$633m, and total annual CEO compensation was reported as HK$1.0m for the year to March 2024. That's a fairly small increase of 6.4% over the previous year. We note that the salary portion, which stands at HK$948.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Consumer Retailing industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.6m. This suggests that Tsan Fong Chan Chan is paid below the industry median. Furthermore, Tsan Fong Chan Chan directly owns HK$465m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. Ocean One Holding pays out 91% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Ocean One Holding Ltd.'s Growth Numbers

Ocean One Holding Ltd. has seen its earnings per share (EPS) increase by 14% a year over the past three years. Its revenue is down 1.8% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Ocean One Holding Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Ocean One Holding Ltd. for providing a total return of 217% 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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. That's why we did some digging and identified 1 warning sign for Ocean One Holding that investors should think about before committing capital to this stock.

Switching gears from Ocean One Holding, 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.