Some Shareholders May Object To A Pay Rise For Qeeka Home (Cayman) Inc.'s (HKG:1739) CEO This Year

Key Insights

• Qeeka Home (Cayman) will host its Annual General Meeting on 4th of June
• Total pay for CEO Huajin Deng includes CN¥656.0k salary
• Total compensation is 53% below industry average
• Qeeka Home (Cayman)'s three-year loss to shareholders was 51% while its EPS was down 64% over the past three years

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The underwhelming performance at Qeeka Home (Cayman) Inc. (HKG:1739) recently has probably not pleased shareholders. At the upcoming AGM on 4th of June, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. From our analysis below, we think CEO compensation looks appropriate for now.

View our latest analysis for Qeeka Home (Cayman)

Comparing Qeeka Home (Cayman) Inc.'s CEO Compensation With The Industry

Our data indicates that Qeeka Home (Cayman) Inc. has a market capitalization of HK$191m, and total annual CEO compensation was reported as CN¥1.0m for the year to December 2024. Notably, that's a decrease of 39% over the year before. Notably, the salary which is CN¥656.0k, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Consumer Services industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥2.1m. This suggests that Huajin Deng is paid below the industry median. Moreover, Huajin Deng also holds HK$52m worth of Qeeka Home (Cayman) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 81% of total compensation represents salary and 19% is other remuneration. In Qeeka Home (Cayman)'s case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Qeeka Home (Cayman) Inc.'s Growth

Qeeka Home (Cayman) Inc. has reduced its earnings per share by 64% a year over the last three years. Its revenue is down 11% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Qeeka Home (Cayman) Inc. Been A Good Investment?

The return of -51% over three years would not have pleased Qeeka Home (Cayman) Inc. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Qeeka Home (Cayman) (1 shouldn't be ignored!) that you should be aware of before investing here.

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.

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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.