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Increases to International Entertainment Corporation's (HKG:1009) CEO Compensation Might Cool off for Now

Simply Wall St ·  Nov 8 06:14

Key Insights

  • International Entertainment to hold its Annual General Meeting on 14th of November
  • Salary of HK$1.08m is part of CEO Henri Ho's total remuneration
  • The overall pay is 60% above the industry average
  • International Entertainment's total shareholder return over the past three years was 82% while its EPS grew by 63% over the past three years

Performance at International Entertainment Corporation (HKG:1009) has been reasonably good and CEO Henri Ho has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 14th of November, 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 Henri Ho Compare With Other Companies In The Industry?

At the time of writing, our data shows that International Entertainment Corporation has a market capitalization of HK$986m, and reported total annual CEO compensation of HK$2.9m for the year to June 2024. Notably, that's an increase of 11% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$1.1m.

On comparing similar-sized companies in the Hong Kong Real Estate industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.8m. This suggests that Henri Ho is paid more than the median for the industry.

Component20242023Proportion (2024)
Salary HK$1.1m HK$789k 37%
Other HK$1.9m HK$1.9m 63%
Total CompensationHK$2.9m HK$2.6m100%

On an industry level, around 79% of total compensation represents salary and 21% is other remuneration. International Entertainment pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

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SEHK:1009 CEO Compensation November 7th 2024

International Entertainment Corporation's Growth

International Entertainment Corporation has seen its earnings per share (EPS) increase by 63% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 International Entertainment Corporation Been A Good Investment?

Boasting a total shareholder return of 82% over three years, International Entertainment Corporation has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

So you may want to check if insiders are buying International Entertainment shares with their own money (free access).

Switching gears from International Entertainment, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

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