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Here's Why We Think Tingyi (Cayman Islands) Holding Corp.'s (HKG:322) CEO Compensation Looks Fair for the time being

Simply Wall St · 05/29 22:42

Key Insights

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Despite Tingyi (Cayman Islands) Holding Corp.'s (HKG:322) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 5th of June. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

See our latest analysis for Tingyi (Cayman Islands) Holding

How Does Total Compensation For Richard Chen Compare With Other Companies In The Industry?

Our data indicates that Tingyi (Cayman Islands) Holding Corp. has a market capitalization of HK$76b, and total annual CEO compensation was reported as CN¥7.0m for the year to December 2024. We note that's a decrease of 46% compared to last year. We note that the salary of CN¥4.20m makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Hong Kong Food industry with market capitalizations above HK$63b, reported a median total CEO compensation of CN¥10.0m. From this we gather that Richard Chen is paid around the median for CEOs in the industry.

Component 2024 2023 Proportion (2024)
Salary CN¥4.2m CN¥4.2m 60%
Other CN¥2.8m CN¥8.8m 40%
Total Compensation CN¥7.0m CN¥13m 100%

Talking in terms of the industry, salary represented approximately 81% of total compensation out of all the companies we analyzed, while other remuneration made up 19% of the pie. Tingyi (Cayman Islands) Holding sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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.

ceo-compensation
SEHK:322 CEO Compensation May 29th 2025

A Look at Tingyi (Cayman Islands) Holding Corp.'s Growth Numbers

Over the last three years, Tingyi (Cayman Islands) Holding Corp. has not seen its earnings per share change much, though they have deteriorated slightly. Revenue was pretty flat on last year.

The lack of EPS growth is certainly uninspiring. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Tingyi (Cayman Islands) Holding Corp. Been A Good Investment?

Tingyi (Cayman Islands) Holding Corp. has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Tingyi (Cayman Islands) Holding that investors should think about before committing capital to this stock.

Important note: Tingyi (Cayman Islands) Holding is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.