Shareholders are likely to refrain from increasing Zengame Technology Holding Limited's (HKG:2660) CEO compensation for the time being.

Key Insights

• Zengame Technology Holding will hold its annual general meeting on May 31st.
• CEO Morino's total compensation includes a salary of 23.1 million yuan
• Total compensation is 678% above the industry average
• Zengame Technology Holdings' total shareholder return over the last three years has been 213%, and EPS has grown 49% over the past three years.

performance Zengame Technology Holdings (HKG:2660) has performed reasonably well and CEO Sheng Ye has done a good job of steering the company in the right direction. Given this performance, CEO compensation is unlikely to be a primary concern for shareholders at the general meeting on May 31. However, some shareholders may want to keep CEO compensation within reasonable limits.

Check out our latest analysis for Zengame Technology Holding

Zengame Technology Holding Limited CEO compensation compared to the industry

Our data shows that Zengame Technology Holding Limited has a market capitalization of HK$3.6b and will report total annual CEO compensation of RMB26m through December 2023. This represents an increase of 9.1% on last year. We can also see that the salary portion, amounting to RMB23.1m, accounts for the majority of the total compensation received by the CEO.

Comparing similar companies in the Hong Kong entertainment industry with market capitalizations ranging from HK$1.6 billion to HK$6.3 billion, we found that the median CEO total compensation was RMB3.3 million. Therefore, we can conclude that Shengye's compensation is higher than the industry average. Furthermore, Shengye directly owns HK$832 million worth of shares in the company, suggesting that it is deeply invested in the company's success.

At an industry level, around 89% of total compensation is salary and 11% is other remuneration. In terms of the distribution of salary in the overall compensation package, there is no significant difference between Zengame Technology Holding and the market as a whole. When total compensation is tilted towards salary, it suggests that the variable portion, which is usually tied to performance, is lower.

Growth of Zengame Technology Holding Limited

Over the last three years, Zengame Technology Holding Limited's earnings per share (EPS) have grown by 49% per year, while revenue has grown by 17% over the last year.

Overall, this is a positive result for shareholders, as it shows the company has been improving in recent years. It's also good to see that revenue has grown nicely over the last year, suggesting the business is healthy and growing. There are no analyst forecasts for the company, but shareholders might want to check out this detailed historical graph of earnings, revenue and cash flow.

Is Zengame Technology Holding Limited a good investment?

We think that a total shareholder return of 213% over three years would please most Zengame Technology Holding Limited shareholders, and as a result, some might think that the CEO should be paid more than you'd typically get at a company of a similar size.

in conclusion…

Given the company's overall performance is favorable, the CEO's compensation policy may not be a central focus at the next shareholders' meeting, but any decision to increase the CEO's compensation may face some backlash from shareholders, given that the CEO's compensation is already higher than the industry average.

While CEO compensation is an important factor to watch, there are other areas investors should pay attention to. We have done some research and 1 warning sign for Zengame Technology Holding Investors should keep an eye on this going forward.

Arguably, the quality of the company matters much more than the CEO's compensation level. free A list of interesting companies with high return on equity and low debt.

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This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.