It's Unlikely That Paradise Entertainment Limited's (HKG:1180) CEO Will See A Huge Pay Rise This Year

Key Insights

• Paradise Entertainment to hold its Annual General Meeting on 27th of May
• CEO Jay Chun's total compensation includes salary of HK$12.3m
• The total compensation is 670% higher than the average for the industry
• Over the past three years, Paradise Entertainment's EPS grew by 114% and over the past three years, the total shareholder return was 159%

We've discovered 2 warning signs about Paradise Entertainment. View them for free.

Performance at Paradise Entertainment Limited (HKG:1180) has been reasonably good and CEO Jay Chun has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 27th of May. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Paradise Entertainment

How Does Total Compensation For Jay Chun Compare With Other Companies In The Industry?

According to our data, Paradise Entertainment Limited has a market capitalization of HK$2.0b, and paid its CEO total annual compensation worth HK$16m over the year to December 2024. Notably, that's an increase of 21% over the year before. In particular, the salary of HK$12.3m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Hong Kong Hospitality industry with market caps ranging from HK$783m to HK$3.1b, we found that the median CEO total compensation was HK$2.1m. This suggests that Jay Chun is paid more than the median for the industry. Furthermore, Jay Chun directly owns HK$1.2b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	HK$12m	HK$12m	76%
Other	HK$3.9m	HK$1.3m	24%
Total Compensation	HK$16m	HK$13m	100%

Speaking on an industry level, nearly 83% of total compensation represents salary, while the remainder of 17% is other remuneration. Our data reveals that Paradise Entertainment 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.

Paradise Entertainment Limited's Growth

Paradise Entertainment Limited has seen its earnings per share (EPS) increase by 114% a year over the past three years. It achieved revenue growth of 71% 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Paradise Entertainment Limited Been A Good Investment?

Boasting a total shareholder return of 159% over three years, Paradise Entertainment Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Paradise Entertainment that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.