We Think Shareholders Are Less Likely To Approve A Large Pay Rise For G & M Holdings Limited's (HKG:6038) CEO For Now

Key Insights

• G & M Holdings to hold its Annual General Meeting on 18th of June
• Salary of HK$3.55m is part of CEO Chi Hung Lee's total remuneration
• The overall pay is 155% above the industry average
• Over the past three years, G & M Holdings' EPS grew by 5.4% and over the past three years, the total shareholder return was 151%

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CEO Chi Hung Lee has done a decent job of delivering relatively good performance at G & M Holdings Limited (HKG:6038) recently. As shareholders go into the upcoming AGM on 18th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for G & M Holdings

How Does Total Compensation For Chi Hung Lee Compare With Other Companies In The Industry?

According to our data, G & M Holdings Limited has a market capitalization of HK$235m, and paid its CEO total annual compensation worth HK$5.7m over the year to December 2024. That's a fairly small increase of 3.0% over the previous year. We note that the salary portion, which stands at HK$3.55m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Construction industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.3m. Hence, we can conclude that Chi Hung Lee is remunerated higher than the industry median.

Talking in terms of the industry, salary represented approximately 85% of total compensation out of all the companies we analyzed, while other remuneration made up 15% of the pie. G & M Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at G & M Holdings Limited's Growth Numbers

Over the past three years, G & M Holdings Limited has seen its earnings per share (EPS) grow by 5.4% per year. It saw its revenue drop 14% over the last year.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 G & M Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with G & M Holdings Limited for providing a total return of 151% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for G & M Holdings that investors should think about before committing capital to this stock.

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.