Shareholders May Find It Hard To Justify Increasing AGTech Holdings Limited's (HKG:8279) CEO Compensation For Now

Key Insights

• AGTech Holdings' Annual General Meeting to take place on 16th of September
• Salary of HK$3.04m is part of CEO John Sun's total remuneration
• The total compensation is similar to the average for the industry
• AGTech Holdings' EPS grew by 60% over the past three years while total shareholder loss over the past three years was 18%

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Shareholders of AGTech Holdings Limited (HKG:8279) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 16th of September. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for AGTech Holdings

How Does Total Compensation For John Sun Compare With Other Companies In The Industry?

At the time of writing, our data shows that AGTech Holdings Limited has a market capitalization of HK$2.7b, and reported total annual CEO compensation of HK$6.6m for the year to March 2025. We note that's a decrease of 13% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$3.0m.

On comparing similar companies from the Hong Kong Diversified Financial industry with market caps ranging from HK$1.6b to HK$6.2b, we found that the median CEO total compensation was HK$5.2m. From this we gather that John Sun is paid around the median for CEOs in the industry. What's more, John Sun holds HK$479m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. It's interesting to note that AGTech Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

AGTech Holdings Limited's Growth

AGTech Holdings Limited has seen its earnings per share (EPS) increase by 60% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has AGTech Holdings Limited Been A Good Investment?

Given the total shareholder loss of 18% over three years, many shareholders in AGTech Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. 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 be keen to know what's holding the stock back when earnings have grown. 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.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at AGTech Holdings.

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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.