We discuss why the compensation of the CEO of Fujikon Industrial Holdings Limited (HKG: 927) can be scrutinized
Shareholders are unlikely to be too impressed with the disappointing results of Fujikon Industrial Holdings Limited (HKG: 927) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next annual general meeting on August 13, 2021. They will also have the opportunity to influence management decision-making by voting on resolutions such as executive compensation, which can have an impact on the business. value in the future. The data we present below explains why we believe CEO compensation is not in line with recent performance.
Check out our latest analysis for Fujikon Industrial Holdings
How does Johnny Yeung’s total compensation compare to that of other companies in the industry?
At the time of writing, our data shows that Fujikon Industrial Holdings Limited has a market capitalization of HK $ 426 million and reported total annual CEO compensation of HK $ 2.7 million for the year through March 2021. This is just a slight increase of 7.9% from the last year. In particular, the salary of HK $ 2.47 million is a huge part of the total compensation paid to the CEO.
Compared to other companies in the industry with market capitalizations of less than HK $ 1.6 billion, the median total CEO compensation was HK $ 3.5 million. So it looks like Fujikon Industrial Holdings is compensating Johnny Yeung in line with the industry median. Additionally, Johnny Yeung owns HK $ 54 million in company stock in his own name, indicating that they have a lot of skin in the game.
|Making up||2021||2020||Proportion (2021)|
|Salary||HK $ 2.5 million||HK $ 2.5 million||93%|
|Other||197,000 HK $||HK $ 3.0k||7%|
|Total compensation||2.7 million Hong Kong dollars||HK $ 2.5 million||100%|
At the industry level, almost 80% of total compensation is salary, while the remainder 20% is other compensation. Interestingly, Fujikon Industrial Holdings pays a greater portion of compensation through salary, compared to industry. If salary is the primary component of total compensation, this suggests that the CEO receives a higher fixed proportion of total compensation, regardless of performance.
Growth of Fujikon Industrial Holdings Limited
Over the past three years, Fujikon Industrial Holdings Limited has reduced its earnings per share by 31% per year. He has seen his income drop 29% in the past year.
Overall, this is not a very positive result for shareholders. And the fact that revenues are declining from year to year no doubt paints a deplorable picture. It’s hard to say the company is firing on all cylinders, so shareholders might be averse to high CEO pay. We don’t have analyst forecasts, but you can better understand its growth by looking at this more detailed historical chart of earnings, income and cash flow.
Fujikon Industrial Holdings Limited Was a Good Investment?
With a total three-year loss of 5.6% to shareholders, Fujikon Industrial Holdings Limited would certainly have some unhappy shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
Along with the poor performance of the company, shareholders have suffered from a low stock price return on their investments, which suggests that there is little or no chance that they are in favor of an increase. CEO salary. At the next AGM, management will have the opportunity to explain how they plan to get the company back on track and address investor concerns.
CEO compensation is a crucial aspect to watch, but investors should also keep their eyes open for other issues related to company performance. This is why we have dug and identified 3 warning signs for Fujikon Industrial Holdings that you need to know before you invest.
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