Key Insights

• A.Plus Group Holdings to hold its Annual General Meeting on 30th of August
• Salary of HK$2.96m is part of CEO Wing Kong Fong's total remuneration
• The overall pay is 168% above the industry average
• A.Plus Group Holdings' EPS declined by 32% over the past three years while total shareholder loss over the past three years was 61%

Shareholders will probably not be too impressed with the underwhelming results at A.Plus Group Holdings Limited (HKG:1841) recently. At the upcoming AGM on 30th of August, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Comparing A.Plus Group Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that A.Plus Group Holdings Limited has a market capitalization of HK$72m, and reported total annual CEO compensation of HK$5.0m for the year to March 2024. We note that's an increase of 28% above last year. In particular, the salary of HK$2.96m, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Commercial Services industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.9m. This suggests that Wing Kong Fong is paid more than the median for the industry. Moreover, Wing Kong Fong also holds HK$21m worth of A.Plus Group Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 81% of total compensation out of all the companies we analyzed, while other remuneration made up 19% of the pie. In A.Plus Group Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at A.Plus Group Holdings Limited's Growth Numbers

A.Plus Group Holdings Limited has reduced its earnings per share by 32% a year over the last three years. It saw its revenue drop 3.0% over the last year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 A.Plus Group Holdings Limited Been A Good Investment?

Few A.Plus Group Holdings Limited shareholders would feel satisfied with the return of -61% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 2 which make us uncomfortable) in A.Plus Group Holdings we think you should know about.

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.