Ulferts International Limited's (HKG:1711) CEO Might Not Expect Shareholders To Be So Generous This Year

Explore Ulferts International's Fair Values from the Community and select yours

Key Insights

• Ulferts International to hold its Annual General Meeting on 19th of August
• Salary of HK$1.48m is part of CEO Michael Chan's total remuneration
• The overall pay is comparable to the industry average
• Ulferts International's three-year loss to shareholders was 60% while its EPS was down 66% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at Ulferts International Limited (HKG:1711) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 19th of August. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Ulferts International

Comparing Ulferts International Limited's CEO Compensation With The Industry

According to our data, Ulferts International Limited has a market capitalization of HK$60m, and paid its CEO total annual compensation worth HK$1.7m over the year to March 2025. That's slightly lower by 4.3% over the previous year. In particular, the salary of HK$1.48m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Specialty Retail industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.8m. So it looks like Ulferts International compensates Michael Chan in line with the median for the industry.

Component	2025	2024	Proportion (2025)
Salary	HK$1.5m	HK$1.5m	88%
Other	HK$193k	HK$210k	12%
Total Compensation	HK$1.7m	HK$1.8m	100%

On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. Ulferts International is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Ulferts International Limited's Growth

Over the last three years, Ulferts International Limited has shrunk its earnings per share by 66% per year. Its revenue is down 11% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Ulferts International Limited Been A Good Investment?

With a total shareholder return of -60% over three years, Ulferts International Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Ulferts International that you should be aware of before investing.

Switching gears from Ulferts International, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.