We Think Yuan Heng Gas Holdings Limited's (HKG:332) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Yuan Heng Gas Holdings will host its Annual General Meeting on 29th of September
• Salary of CN¥333.0k is part of CEO Jianqing Wang's total remuneration
• The overall pay is comparable to the industry average
• Yuan Heng Gas Holdings' EPS declined by 132% over the past three years while total shareholder loss over the past three years was 95%

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The results at Yuan Heng Gas Holdings Limited (HKG:332) have been quite disappointing recently and CEO Jianqing Wang bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 29th of September. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Yuan Heng Gas Holdings

How Does Total Compensation For Jianqing Wang Compare With Other Companies In The Industry?

According to our data, Yuan Heng Gas Holdings Limited has a market capitalization of HK$137m, and paid its CEO total annual compensation worth CN¥1.1m over the year to March 2025. We note that's a decrease of 16% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥333k.

In comparison with other companies in the Hong Kong Oil and Gas industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.4m. So it looks like Yuan Heng Gas Holdings compensates Jianqing Wang in line with the median for the industry. What's more, Jianqing Wang holds HK$88m 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, roughly 80% of total compensation represents salary and 20% is other remuneration. In Yuan Heng Gas Holdings' case, non-salary compensation represents a greater slice of total remuneration, 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.

Yuan Heng Gas Holdings Limited's Growth

Yuan Heng Gas Holdings Limited has reduced its earnings per share by 132% a year over the last three years. Its revenue is down 44% over the previous year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet 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 Yuan Heng Gas Holdings Limited Been A Good Investment?

With a total shareholder return of -95% over three years, Yuan Heng Gas Holdings Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 5 warning signs for Yuan Heng Gas Holdings you should be aware of, and 3 of them don't sit too well with us.

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.