Key Insights
- China Golden Classic Group's Annual General Meeting to take place on 16th of May
- CEO Xing Tong's total compensation includes salary of CN¥482.0k
- Total compensation is 68% below industry average
- Over the past three years, China Golden Classic Group's EPS fell by 39% and over the past three years, the total loss to shareholders 47%
The disappointing performance at China Golden Classic Group Limited (HKG:8281) will make some shareholders rather disheartened. 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 16th of May. From our analysis below, we think CEO compensation looks appropriate for now.
View our latest analysis for China Golden Classic Group
How Does Total Compensation For Xing Tong Compare With Other Companies In The Industry?
At the time of writing, our data shows that China Golden Classic Group Limited has a market capitalization of HK$60m, and reported total annual CEO compensation of CN¥578k for the year to December 2024. We note that's an increase of 17% above last year. In particular, the salary of CN¥482.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the Hong Kong Personal Products industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.8m. Accordingly, China Golden Classic Group pays its CEO under the industry median. Moreover, Xing Tong also holds HK$6.4m worth of China Golden Classic Group 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 | CN¥482k | CN¥463k | 83% |
| Other | CN¥96k | CN¥30k | 17% |
| Total Compensation | CN¥578k | CN¥493k | 100% |
On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. China Golden Classic Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
China Golden Classic Group Limited's Growth
China Golden Classic Group Limited has reduced its earnings per share by 39% a year over the last three years. It saw its revenue drop 11% over the last year.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation 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 Golden Classic Group Limited Been A Good Investment?
Few China Golden Classic Group Limited shareholders would feel satisfied with the return of -47% over three years. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for China Golden Classic Group (2 are potentially serious!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.