Key Insights
- A-Living Smart City Services will host its Annual General Meeting on 29th of May
- Total pay for CEO Dalong Li includes CN¥881.0k salary
- The total compensation is 78% less than the average for the industry
- A-Living Smart City Services' EPS declined by 37% over the past three years while total shareholder loss over the past three years was 89%
Performance at A-Living Smart City Services Co., Ltd. (HKG:3319) has not been particularly rosy recently and shareholders will likely be holding CEO Dalong Li 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 29th of May. We think most shareholders will probably pass the CEO compensation, based on what we gathered.
Check out our latest analysis for A-Living Smart City Services
Comparing A-Living Smart City Services Co., Ltd.'s CEO Compensation With The Industry
Our data indicates that A-Living Smart City Services Co., Ltd. has a market capitalization of HK$5.6b, and total annual CEO compensation was reported as CN¥948k for the year to December 2023. Notably, that's a decrease of 53% over the year before. We note that the salary portion, which stands at CN¥881.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the Hong Kong Real Estate industry with market capitalizations ranging between HK$3.1b and HK$12b had a median total CEO compensation of CN¥4.4m. That is to say, Dalong Li is paid under the industry median. Moreover, Dalong Li also holds HK$792k worth of A-Living Smart City Services stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | CN¥881k | CN¥1.9m | 93% |
| Other | CN¥67k | CN¥77k | 7% |
| Total Compensation | CN¥948k | CN¥2.0m | 100% |
On an industry level, roughly 77% of total compensation represents salary and 23% is other remuneration. A-Living Smart City Services is paying a higher share of its remuneration through a salary in comparison to the overall 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.
A Look at A-Living Smart City Services Co., Ltd.'s Growth Numbers
Over the last three years, A-Living Smart City Services Co., Ltd. has shrunk its earnings per share by 37% per year. The trailing twelve months of revenue was pretty much the same as the prior period.
Few shareholders would be pleased to read that EPS have declined. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has A-Living Smart City Services Co., Ltd. Been A Good Investment?
Few A-Living Smart City Services Co., Ltd. shareholders would feel satisfied with the return of -89% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a 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. That's why we did some digging and identified 2 warning signs for A-Living Smart City Services that investors should think about before committing capital to this stock.
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.
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.