Increases to HSC Resources Group Limited's (HKG:1850) CEO Compensation Might Cool off for now

Key Insights

• HSC Resources Group will host its Annual General Meeting on 24th of October
• Salary of HK$3.25m is part of CEO Alexander Li's total remuneration
• The total compensation is 120% higher than the average for the industry
• HSC Resources Group's EPS grew by 75% over the past three years while total shareholder loss over the past three years was 89%

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In the past three years, the share price of HSC Resources Group Limited (HKG:1850) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 24th of October. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for HSC Resources Group

Comparing HSC Resources Group Limited's CEO Compensation With The Industry

At the time of writing, our data shows that HSC Resources Group Limited has a market capitalization of HK$107m, and reported total annual CEO compensation of HK$3.3m for the year to April 2025. That's a notable increase of 8.3% on last year. Notably, the salary which is HK$3.25m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Commercial Services industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.5m. This suggests that Alexander Li is paid more than the median for the industry.

Speaking on an industry level, nearly 85% of total compensation represents salary, while the remainder of 15% is other remuneration. HSC Resources Group pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at HSC Resources Group Limited's Growth Numbers

HSC Resources Group Limited's earnings per share (EPS) grew 75% per year over the last three years. Its revenue is down 5.1% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 HSC Resources Group Limited Been A Good Investment?

The return of -89% over three years would not have pleased HSC Resources Group Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Alexander receives almost all of their compensation through a salary. 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 probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 5 warning signs for HSC Resources Group you should be aware of, and 1 of them doesn'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.