Key Insights

• OKG Technology Holdings to hold its Annual General Meeting on 6th of September
• CEO Jeff Ren's total compensation includes salary of HK$3.42m
• The overall pay is 55% above the industry average
• OKG Technology Holdings' EPS grew by 81% over the past three years while total shareholder loss over the past three years was 62%

The underwhelming share price performance of OKG Technology Holdings Limited (HKG:1499) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 6th of September. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

How Does Total Compensation For Jeff Ren Compare With Other Companies In The Industry?

At the time of writing, our data shows that OKG Technology Holdings Limited has a market capitalization of HK$736m, and reported total annual CEO compensation of HK$3.5m for the year to March 2024. That's a notable decrease of 14% on last year. We note that the salary portion, which stands at HK$3.42m constitutes the majority of total compensation received by the CEO.

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. Accordingly, our analysis reveals that OKG Technology Holdings Limited pays Jeff Ren north of the industry median.

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. OKG Technology Holdings is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

OKG Technology Holdings Limited's Growth

Over the past three years, OKG Technology Holdings Limited has seen its earnings per share (EPS) grow by 81% per year. Its revenue is down 2.2% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 OKG Technology Holdings Limited Been A Good Investment?

The return of -62% over three years would not have pleased OKG Technology Holdings Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Jeff receives almost all of their compensation through a salary. The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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've identified 2 warning signs for OKG Technology Holdings that investors should be aware of in a dynamic business environment.

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.