Key Insights
- Tycoon Group Holdings' Annual General Meeting to take place on 31st of May
- Salary of HK$3.11m is part of CEO Michael Wong's total remuneration
- The total compensation is similar to the average for the industry
- Tycoon Group Holdings' EPS grew by 132% over the past three years while total shareholder return over the past three years was 138%
The performance at Tycoon Group Holdings Limited (HKG:3390) has been quite strong recently and CEO Michael Wong has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 31st of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
View our latest analysis for Tycoon Group Holdings
Comparing Tycoon Group Holdings Limited's CEO Compensation With The Industry
Our data indicates that Tycoon Group Holdings Limited has a market capitalization of HK$3.2b, and total annual CEO compensation was reported as HK$3.3m for the year to December 2023. That's a modest increase of 5.1% on the prior year. Notably, the salary which is HK$3.11m, represents most of the total compensation being paid.
On examining similar-sized companies in the Hong Kong Healthcare industry with market capitalizations between HK$1.6b and HK$6.3b, we discovered that the median CEO total compensation of that group was HK$3.0m. So it looks like Tycoon Group Holdings compensates Michael Wong in line with the median for the industry. What's more, Michael Wong holds HK$985m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | HK$3.1m | HK$3.0m | 94% |
| Other | HK$183k | HK$138k | 6% |
| Total Compensation | HK$3.3m | HK$3.1m | 100% |
Talking in terms of the industry, salary represented approximately 72% of total compensation out of all the companies we analyzed, while other remuneration made up 28% of the pie. Tycoon Group Holdings 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 Tycoon Group Holdings Limited's Growth Numbers
Over the past three years, Tycoon Group Holdings Limited has seen its earnings per share (EPS) grow by 132% per year. It achieved revenue growth of 1.1% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Tycoon Group Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with Tycoon Group Holdings Limited for providing a total return of 138% over three years. 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 the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Tycoon Group Holdings that investors should be aware of in a dynamic business environment.
Switching gears from Tycoon Group Holdings, 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.
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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.