Key Insights
- Hang Lung Group's Annual General Meeting to take place on 30th of April
- Total pay for CEO Weber Lo includes HK$20.6m salary
- The overall pay is 592% above the industry average
- Hang Lung Group's EPS declined by 15% over the past three years while total shareholder loss over the past three years was 16%
Hang Lung Group Limited (HKG:10) has not performed well recently and CEO Weber Lo will probably need to up their game. At the upcoming AGM on 30th of April, 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. From our analysis, we think CEO compensation may need a review in light of the recent performance.
See our latest analysis for Hang Lung Group
How Does Total Compensation For Weber Lo Compare With Other Companies In The Industry?
Our data indicates that Hang Lung Group Limited has a market capitalization of HK$15b, and total annual CEO compensation was reported as HK$26m for the year to December 2024. Notably, that's a decrease of 22% over the year before. We note that the salary portion, which stands at HK$20.6m 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 ranging from HK$7.8b to HK$25b, the reported median CEO total compensation was HK$3.8m. Accordingly, our analysis reveals that Hang Lung Group Limited pays Weber Lo north of the industry median. Moreover, Weber Lo also holds HK$4.9m worth of Hang Lung Group stock directly under their own name.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | HK$21m | HK$21m | 79% |
| Other | HK$5.4m | HK$13m | 21% |
| Total Compensation | HK$26m | HK$34m | 100% |
On an industry level, around 79% of total compensation represents salary and 21% is other remuneration. Hang Lung Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Hang Lung Group Limited's Growth Numbers
Hang Lung Group Limited has reduced its earnings per share by 15% a year over the last three years. Its revenue is up 8.1% over the last year.
The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Hang Lung Group Limited Been A Good Investment?
With a three year total loss of 16% for the shareholders, Hang Lung Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
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, the board will get the chance to explain the steps it plans to take to improve business performance.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Hang Lung Group you should be aware of, and 1 of them doesn't sit too well with us.
Switching gears from Hang Lung Group, 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.