Here's Why Some Shareholders May Not Be Too Generous With Veson Holdings Limited's (HKG:1399) CEO Compensation This Year

Key Insights

• Veson Holdings will host its Annual General Meeting on 27th of May
• Salary of CN¥598.0k is part of CEO Xiu Qin Lian's total remuneration
• Total compensation is 43% below industry average
• Veson Holdings' three-year loss to shareholders was 32% while its EPS was down 45% over the past three years

We've discovered 3 warning signs about Veson Holdings. View them for free.

The underwhelming performance at Veson Holdings Limited (HKG:1399) recently has probably not pleased shareholders. 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 27th of May. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

View our latest analysis for Veson Holdings

Comparing Veson Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Veson Holdings Limited has a market capitalization of HK$213m, and reported total annual CEO compensation of CN¥806k for the year to December 2024. We note that's a decrease of 9.8% compared to last year. Notably, the salary which is CN¥598.0k, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Electrical industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.4m. In other words, Veson Holdings pays its CEO lower than the industry median.

Component	2024	2023	Proportion (2024)
Salary	CN¥598k	CN¥664k	74%
Other	CN¥208k	CN¥230k	26%
Total Compensation	CN¥806k	CN¥894k	100%

On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. Veson Holdings 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.

Veson Holdings Limited's Growth

Veson Holdings Limited has reduced its earnings per share by 45% a year over the last three years. In the last year, its revenue is down 13%.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. 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 Veson Holdings Limited Been A Good Investment?

With a total shareholder return of -32% over three years, Veson Holdings Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Veson Holdings you should be aware of, and 1 of them shouldn't be ignored.

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.