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Key Insights

• Zhejiang Shibao's Annual General Meeting to take place on 15th of May
• CEO Bao Yi Zhang's total compensation includes salary of CN¥1.20m
• The overall pay is comparable to the industry average
• Over the past three years, Zhejiang Shibao's EPS grew by 165% and over the past three years, the total shareholder return was 225%

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It would be hard to discount the role that CEO Bao Yi Zhang has played in delivering the impressive results at Zhejiang Shibao Company Limited (HKG:1057) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 15th of May. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Zhejiang Shibao

How Does Total Compensation For Bao Yi Zhang Compare With Other Companies In The Industry?

At the time of writing, our data shows that Zhejiang Shibao Company Limited has a market capitalization of HK$9.0b, and reported total annual CEO compensation of CN¥1.6m for the year to December 2024. We note that's an increase of 28% above last year. We note that the salary portion, which stands at CN¥1.20m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Hong Kong Auto Components industry with market capitalizations between HK$3.1b and HK$12b, we discovered that the median CEO total compensation of that group was CN¥2.1m. This suggests that Zhejiang Shibao remunerates its CEO largely in line with the industry average.

Speaking on an industry level, nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. Our data reveals that Zhejiang Shibao allocates salary more or less in line with the wider market. 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.

Zhejiang Shibao Company Limited's Growth

Zhejiang Shibao Company Limited has seen its earnings per share (EPS) increase by 165% a year over the past three years. It achieved revenue growth of 48% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Zhejiang Shibao Company Limited Been A Good Investment?

We think that the total shareholder return of 225%, over three years, would leave most Zhejiang Shibao Company Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Zhejiang Shibao that investors should look into moving forward.

Switching gears from Zhejiang Shibao, 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.

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.