Yida China Holdings Limited's (HKG:3639) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Yida China Holdings to hold its Annual General Meeting on 2nd of June
• CEO Xiuwen Jiang's total compensation includes salary of CN¥2.00m
• The overall pay is 45% above the industry average
• Yida China Holdings' three-year loss to shareholders was 82% while its EPS was down 37% over the past three years

Yida China Holdings Limited (HKG:3639) has not performed well recently and CEO Xiuwen Jiang will probably need to up their game. At the upcoming AGM on 2nd of June, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Yida China Holdings

Comparing Yida China Holdings Limited's CEO Compensation With The Industry

Our data indicates that Yida China Holdings Limited has a market capitalization of HK$191m, and total annual CEO compensation was reported as CN¥2.2m for the year to December 2024. This means that the compensation hasn't changed much from last year. In particular, the salary of CN¥2.00m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Real Estate industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.5m. Hence, we can conclude that Xiuwen Jiang is remunerated higher than the industry median.

On an industry level, around 82% of total compensation represents salary and 18% is other remuneration. Yida China Holdings pays out 92% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Yida China Holdings Limited's Growth

Over the last three years, Yida China Holdings Limited has shrunk its earnings per share by 37% per year. It saw its revenue drop 28% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Yida China Holdings Limited Been A Good Investment?

With a total shareholder return of -82% over three years, Yida China Holdings Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Yida China Holdings (2 shouldn't be ignored!) that you should be aware of before investing here.

Important note: Yida China Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.