Key Insights
- Sun Hung Kai Properties' Annual General Meeting to take place on 7th of November
- CEO Raymond Kwok's total compensation includes salary of HK$3.02m
- The total compensation is 70% less than the average for the industry
- Sun Hung Kai Properties' three-year loss to shareholders was 3.9% while its EPS was down 11% over the past three years
Performance at Sun Hung Kai Properties Limited (HKG:16) has not been particularly rosy recently and shareholders will likely be holding CEO Raymond Kwok 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 7th of November. We think most shareholders will probably pass the CEO compensation, based on what we gathered.
See our latest analysis for Sun Hung Kai Properties
How Does Total Compensation For Raymond Kwok Compare With Other Companies In The Industry?
According to our data, Sun Hung Kai Properties Limited has a market capitalization of HK$244b, and paid its CEO total annual compensation worth HK$4.1m over the year to June 2024. That's a modest increase of 3.0% on the prior year. We note that the salary portion, which stands at HK$3.02m constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the Hong Kong Real Estate industry with market capitalizations over HK$62b, the reported median total CEO compensation was HK$14m. That is to say, Raymond Kwok is paid under the industry median. Moreover, Raymond Kwok also holds HK$5.7b worth of Sun Hung Kai Properties stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | HK$3.0m | HK$2.9m | 74% |
| Other | HK$1.1m | HK$1.1m | 26% |
| Total Compensation | HK$4.1m | HK$4.0m | 100% |
On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. Our data reveals that Sun Hung Kai Properties allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Sun Hung Kai Properties Limited's Growth
Over the last three years, Sun Hung Kai Properties Limited has shrunk its earnings per share by 11% per year. In the last year, its revenue changed by just 0.4%.
The decline in EPS is a bit concerning. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Sun Hung Kai Properties Limited Been A Good Investment?
With a three year total loss of 3.9% for the shareholders, Sun Hung Kai Properties Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Sun Hung Kai Properties that investors should be aware of in a dynamic business environment.
Switching gears from Sun Hung Kai Properties, 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.