Here's Why Xiangxing International Holding Limited's (HKG:1732) CEO Compensation Is The Least Of Shareholders Concerns

Key Insights

• Xiangxing International Holding will host its Annual General Meeting on 24th of June
• Salary of CN¥124.0k is part of CEO Changwu Qiu's total remuneration
• Total compensation is 64% below industry average
• Over the past three years, Xiangxing International Holding's EPS fell by 12% and over the past three years, the total loss to shareholders 18%

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Shareholders may be wondering what CEO Changwu Qiu plans to do to improve the less than great performance at Xiangxing International Holding Limited (HKG:1732) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 24th of June. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for Xiangxing International Holding

How Does Total Compensation For Changwu Qiu Compare With Other Companies In The Industry?

At the time of writing, our data shows that Xiangxing International Holding Limited has a market capitalization of HK$174m, and reported total annual CEO compensation of CN¥714k for the year to December 2024. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥124k.

For comparison, other companies in the Hong Kong Shipping industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥2.0m. That is to say, Changwu Qiu is paid under the industry median.

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. Xiangxing International Holding pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Xiangxing International Holding Limited's Growth

Over the last three years, Xiangxing International Holding Limited has shrunk its earnings per share by 12% per year. In the last year, its revenue is up 33%.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Xiangxing International Holding Limited Been A Good Investment?

Since shareholders would have lost about 18% over three years, some Xiangxing International Holding Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss is certainly disheartening. The poor performance of the share price might have something to do with the lack of earnings growth. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Xiangxing International Holding (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

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.