We Think Shareholders Are Less Likely To Approve A Large Pay Rise For BHCC Holding Limited's (HKG:1552) CEO For Now

Key Insights

• BHCC Holding will host its Annual General Meeting on 27th of June
• CEO Xinping Yang's total compensation includes salary of S$420.0k
• The overall pay is 209% above the industry average
• Over the past three years, BHCC Holding's EPS grew by 115% and over the past three years, the total shareholder return was 69%

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Performance at BHCC Holding Limited (HKG:1552) has been reasonably good and CEO Xinping Yang has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 27th 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 will still be cautious of paying the CEO excessively.

Check out our latest analysis for BHCC Holding

Comparing BHCC Holding Limited's CEO Compensation With The Industry

At the time of writing, our data shows that BHCC Holding Limited has a market capitalization of HK$168m, and reported total annual CEO compensation of S$1.1m for the year to December 2024. That's a notable increase of 77% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at S$420k.

For comparison, other companies in the Hong Kong Construction industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of S$369k. This suggests that Xinping Yang is paid more than the median for the industry.

On an industry level, around 85% of total compensation represents salary and 15% is other remuneration. It's interesting to note that BHCC Holding allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

BHCC Holding Limited's Growth

BHCC Holding Limited's earnings per share (EPS) grew 115% per year over the last three years. Its revenue is down 38% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has BHCC Holding Limited Been A Good Investment?

Boasting a total shareholder return of 69% over three years, BHCC Holding Limited has done well by shareholders. 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for BHCC Holding that investors should look into moving forward.

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.