We Think Some Shareholders May Hesitate To Increase CASH Financial Services Group Limited's (HKG:510) CEO Compensation

Key Insights

• CASH Financial Services Group to hold its Annual General Meeting on 3rd of June
• Total pay for CEO Bankee Kwan includes HK$1.80m salary
• The overall pay is comparable to the industry average
• CASH Financial Services Group's EPS grew by 12% over the past three years while total shareholder loss over the past three years was 45%

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In the past three years, the share price of CASH Financial Services Group Limited (HKG:510) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 3rd of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for CASH Financial Services Group

Comparing CASH Financial Services Group Limited's CEO Compensation With The Industry

Our data indicates that CASH Financial Services Group Limited has a market capitalization of HK$87m, and total annual CEO compensation was reported as HK$1.8m for the year to December 2024. That is, the compensation was roughly the same as last year. Notably, the salary which is HK$1.80m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Capital Markets industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.0m. From this we gather that Bankee Kwan is paid around the median for CEOs in the industry. What's more, Bankee Kwan holds HK$5.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 87% of total compensation represents salary, while the remainder of 13% is other remuneration. Investors will find it interesting that CASH Financial Services Group pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. 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.

CASH Financial Services Group Limited's Growth

CASH Financial Services Group Limited has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is down 12%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 CASH Financial Services Group Limited Been A Good Investment?

The return of -45% over three years would not have pleased CASH Financial Services Group Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

CASH Financial Services Group pays its CEO a majority of compensation through a salary. Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for CASH Financial Services Group that investors should be aware of in a dynamic business environment.

Switching gears from CASH Financial Services Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.