TOT BIOPHARM International Company Limited's (HKG:1875) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• TOT BIOPHARM International's Annual General Meeting to take place on 20th of June
• Total pay for CEO Jun Liu includes CN¥2.94m salary
• The total compensation is similar to the average for the industry
• TOT BIOPHARM International's three-year loss to shareholders was 33% while its EPS grew by 111% over the past three years

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Shareholders of TOT BIOPHARM International Company Limited (HKG:1875) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 20th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for TOT BIOPHARM International

How Does Total Compensation For Jun Liu Compare With Other Companies In The Industry?

According to our data, TOT BIOPHARM International Company Limited has a market capitalization of HK$1.6b, and paid its CEO total annual compensation worth CN¥5.7m over the year to December 2024. Notably, that's a decrease of 25% over the year before. We note that the salary of CN¥2.94m makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar companies from the Hong Kong Biotechs industry with market caps ranging from HK$785m to HK$3.1b, we found that the median CEO total compensation was CN¥5.6m. From this we gather that Jun Liu is paid around the median for CEOs in the industry.

Talking in terms of the industry, salary represented approximately 52% of total compensation out of all the companies we analyzed, while other remuneration made up 48% of the pie. Although there is a difference in how total compensation is set, TOT BIOPHARM International more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

TOT BIOPHARM International Company Limited's Growth

TOT BIOPHARM International Company Limited's earnings per share (EPS) grew 111% per year over the last three years. Its revenue is up 41% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has TOT BIOPHARM International Company Limited Been A Good Investment?

The return of -33% over three years would not have pleased TOT BIOPHARM International Company Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling TOT BIOPHARM International (free visualization of insider trades).

Important note: TOT BIOPHARM International 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.