Key Insights

• Sun Hing Printing Holdings will host its Annual General Meeting on 22nd of November
• Total pay for CEO Kenneth Chan includes HK$9.22m salary
• Total compensation is 423% above industry average
• Sun Hing Printing Holdings' EPS declined by 40% over the past three years while total shareholder loss over the past three years was 30%

Shareholders will probably not be too impressed with the underwhelming results at Sun Hing Printing Holdings Limited (HKG:1975) recently. At the upcoming AGM on 22nd of November, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

How Does Total Compensation For Kenneth Chan Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sun Hing Printing Holdings Limited has a market capitalization of HK$185m, and reported total annual CEO compensation of HK$9.4m for the year to June 2024. Notably, that's a decrease of 47% over the year before. We note that the salary portion, which stands at HK$9.22m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Commercial Services industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.8m. Hence, we can conclude that Kenneth Chan is remunerated higher than the industry median.

Talking in terms of the industry, salary represented approximately 80% of total compensation out of all the companies we analyzed, while other remuneration made up 20% of the pie. Sun Hing Printing 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 total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Sun Hing Printing Holdings Limited's Growth Numbers

Over the last three years, Sun Hing Printing Holdings Limited has shrunk its earnings per share by 40% per year. It saw its revenue drop 45% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Sun Hing Printing Holdings Limited Been A Good Investment?

With a total shareholder return of -30% over three years, Sun Hing Printing Holdings Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Sun Hing Printing Holdings pays its CEO a majority of compensation through a salary. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for Sun Hing Printing Holdings that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.