Key Insights

• Bortex Global's Annual General Meeting to take place on 22nd of November
• CEO CL Shao's total compensation includes salary of HK$600.0k
• The overall pay is 80% below the industry average
• Bortex Global's three-year loss to shareholders was 71% while its EPS was down 109% over the past three years

Performance at Bortex Global Limited (HKG:8118) has not been particularly rosy recently and shareholders will likely be holding CEO CL Shao and the board accountable for this. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 22nd of November. From our analysis below, we think CEO compensation looks appropriate for now.

Comparing Bortex Global Limited's CEO Compensation With The Industry

According to our data, Bortex Global Limited has a market capitalization of HK$31m, and paid its CEO total annual compensation worth HK$600k over the year to April 2024. Notably, that's an increase of 19% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth HK$600k.

For comparison, other companies in the Hong Kong Electrical industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$3.1m. Accordingly, Bortex Global pays its CEO under the industry median. Moreover, CL Shao also holds HK$444k worth of Bortex Global 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 75% of total compensation out of all the companies we analyzed, while other remuneration made up 25% of the pie. Speaking on a company level, Bortex Global prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Bortex Global Limited's Growth

Over the last three years, Bortex Global Limited has shrunk its earnings per share by 109% per year. In the last year, its revenue is down 53%.

Few shareholders would be pleased to read that EPS have declined. 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 Bortex Global Limited Been A Good Investment?

With a total shareholder return of -71% over three years, Bortex Global Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Bortex Global pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 3 which are potentially serious) in Bortex Global 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.

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.