Key Insights

• Landrich Holding to hold its Annual General Meeting on 6th of September
• CEO Ian Tsui's total compensation includes salary of HK$2.04m
• The total compensation is 51% higher than the average for the industry
• Over the past three years, Landrich Holding's EPS fell by 21% and over the past three years, the total shareholder return was 6.3%

Under the guidance of CEO Ian Tsui, Landrich Holding Limited (HKG:2132) has performed reasonably well recently. As shareholders go into the upcoming AGM on 6th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

How Does Total Compensation For Ian Tsui Compare With Other Companies In The Industry?

According to our data, Landrich Holding Limited has a market capitalization of HK$315m, and paid its CEO total annual compensation worth HK$3.4m over the year to March 2024. We note that's an increase of 20% above last year. We note that the salary of HK$2.04m makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar-sized companies in the Hong Kong Construction industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.3m. This suggests that Ian Tsui is paid more than the median for the industry.

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. In Landrich Holding's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Landrich Holding Limited's Growth

Over the last three years, Landrich Holding Limited has shrunk its earnings per share by 21% per year. In the last year, its revenue is up 43%.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Landrich Holding Limited Been A Good Investment?

With a total shareholder return of 6.3% over three years, Landrich Holding Limited has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

The overall company performance has been commendable, however there are still areas for improvement. We still think that some shareholders will be hesitant of increasing CEO pay until EPS growth improves, since they are already paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 5 warning signs for Landrich Holding you should be aware of, and 3 of them are a bit unpleasant.

Important note: Landrich Holding is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.