Key Insights
- China High Speed Transmission Equipment Group to hold its Annual General Meeting on 20th of June
- Total pay for CEO Jichun Hu includes CN¥2.70m salary
- The total compensation is similar to the average for the industry
- China High Speed Transmission Equipment Group's three-year loss to shareholders was 80% while its EPS was down 52% over the past three years
The results at China High Speed Transmission Equipment Group Co., Ltd. (HKG:658) have been quite disappointing recently and CEO Jichun Hu bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 20th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.
View our latest analysis for China High Speed Transmission Equipment Group
Comparing China High Speed Transmission Equipment Group Co., Ltd.'s CEO Compensation With The Industry
Our data indicates that China High Speed Transmission Equipment Group Co., Ltd. has a market capitalization of HK$1.7b, and total annual CEO compensation was reported as CN¥2.8m for the year to December 2023. That's a notable increase of 12% on last year. We note that the salary portion, which stands at CN¥2.70m constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the Hong Kong Electrical industry with market capitalizations ranging between HK$781m and HK$3.1b had a median total CEO compensation of CN¥3.2m. This suggests that China High Speed Transmission Equipment Group remunerates its CEO largely in line with the industry average.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | CN¥2.7m | CN¥2.4m | 98% |
| Other | CN¥53k | CN¥53k | 2% |
| Total Compensation | CN¥2.8m | CN¥2.5m | 100% |
On an industry level, around 78% of total compensation represents salary and 22% is other remuneration. China High Speed Transmission Equipment Group pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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.
China High Speed Transmission Equipment Group Co., Ltd.'s Growth
China High Speed Transmission Equipment Group Co., Ltd. has reduced its earnings per share by 52% a year over the last three years. It achieved revenue growth of 14% over the last year.
Few shareholders would be pleased to read that EPS have declined. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. These factors suggest that the business performance wouldn't really justify a high pay packet 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 China High Speed Transmission Equipment Group Co., Ltd. Been A Good Investment?
Few China High Speed Transmission Equipment Group Co., Ltd. shareholders would feel satisfied with the return of -80% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
China High Speed Transmission Equipment Group 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.
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 2 warning signs (and 1 which is concerning) in China High Speed Transmission Equipment Group we think you should know about.
Important note: China High Speed Transmission Equipment Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.