Zengame Technology Holding Limited (HKG:2660) has been demonstrating satisfactory performance under the leadership of CEO Sheng Ye. As the Annual General Meeting approaches on 31st May, shareholders may not be placing CEO compensation at the forefront of their concerns. However, it remains an aspect worth monitoring.
CEO Compensation Comparative Analysis
With a market capitalization of HK$3.6b, Zengame Technology Holding Limited reported total annual CEO compensation of CN¥26m for the year ending December 2023, reflecting a 9.1% increase from the previous year. The majority of this compensation, amounting to CN¥23.1m, is in the form of salary, which is notably high in comparison to similar companies in the Hong Kong Entertainment industry.
In contrast, when compared to companies with market caps ranging from HK$1.6b to HK$6.3b, the median CEO total compensation was CN¥3.3m, indicating that Sheng Ye’s compensation is considerably higher. It is noteworthy that Sheng Ye also holds HK$832m worth of shares in the company, demonstrating a significant personal investment in the company’s success.
Growth and Returns of Zengame Technology Holding Limited
Over the past three years, Zengame Technology Holding Limited has witnessed an annual 49% growth in earnings per share (EPS) and a 17% increase in revenue in the last year. These figures signal positive outcomes for shareholders, underscoring the company’s recent advancements. Moreover, the total shareholder return over the past three years has been an impressive 213%.
In Conclusion
Considering the overall performance of the company, CEO remuneration may not be the primary concern for shareholders at the upcoming AGM. However, objections may arise if there are proposals to increase CEO pay, given the existing higher-than-industry-average compensation. While CEO compensation holds significance, investors should also scrutinize other facets of the company’s performance. It is advisable to delve into areas such as business quality, return on equity, and valuation to make well-informed investment decisions.
In summary, although Zengame Technology Holding Limited’s CEO compensation may not be the foremost concern for shareholders, it remains a crucial aspect to evaluate. Investors should take a comprehensive approach and conduct thorough analysis before making any investment decisions.