We Take A Look At Why Hangzhou SF Intra-city Industrial Co., Ltd.'s (HKG:9699) CEO Has Earned Their Pay Packet

Key Insights

• Hangzhou SF Intra-city Industrial's Annual General Meeting to take place on 20th of June
• Salary of CN¥2.33m is part of CEO Haijin Sun's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Hangzhou SF Intra-city Industrial's EPS grew by 124% and over the past three years, the total shareholder return was 112%

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It would be hard to discount the role that CEO Haijin Sun has played in delivering the impressive results at Hangzhou SF Intra-city Industrial Co., Ltd. (HKG:9699) recently. Coming up to the next AGM on 20th of June, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for Hangzhou SF Intra-city Industrial

Comparing Hangzhou SF Intra-city Industrial Co., Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that Hangzhou SF Intra-city Industrial Co., Ltd. has a market capitalization of HK$15b, and reported total annual CEO compensation of CN¥2.4m for the year to December 2024. This means that the compensation hasn't changed much from last year. Notably, the salary which is CN¥2.33m, represents most of the total compensation being paid.

On comparing similar companies from the Hong Kong Logistics industry with market caps ranging from HK$7.8b to HK$25b, we found that the median CEO total compensation was CN¥2.5m. From this we gather that Haijin Sun is paid around the median for CEOs in the industry.

Speaking on an industry level, nearly 88% of total compensation represents salary, while the remainder of 12% is other remuneration. Hangzhou SF Intra-city Industrial is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Hangzhou SF Intra-city Industrial Co., Ltd.'s Growth

Over the past three years, Hangzhou SF Intra-city Industrial Co., Ltd. has seen its earnings per share (EPS) grow by 124% per year. It achieved revenue growth of 27% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Hangzhou SF Intra-city Industrial Co., Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Hangzhou SF Intra-city Industrial Co., Ltd. for providing a total return of 112% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Hangzhou SF Intra-city Industrial pays its CEO a majority of compensation through a salary. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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 Hangzhou SF Intra-city Industrial 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.