Here's Why Shareholders May Want To Be Cautious With Increasing Zylox-Tonbridge Medical Technology Co., Ltd.'s (HKG:2190) CEO Pay Packet

Key Insights

• Zylox-Tonbridge Medical Technology to hold its Annual General Meeting on 30th of May
• Salary of CN¥3.00m is part of CEO Jonathon Zhao's total remuneration
• The total compensation is 234% higher than the average for the industry
• Zylox-Tonbridge Medical Technology's EPS grew by 85% over the past three years while total shareholder return over the past three years was 72%

We've discovered 1 warning sign about Zylox-Tonbridge Medical Technology. View them for free.

CEO Jonathon Zhao has done a decent job of delivering relatively good performance at Zylox-Tonbridge Medical Technology Co., Ltd. (HKG:2190) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 30th of May. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Zylox-Tonbridge Medical Technology

Comparing Zylox-Tonbridge Medical Technology Co., Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that Zylox-Tonbridge Medical Technology Co., Ltd. has a market capitalization of HK$6.2b, and reported total annual CEO compensation of CN¥14m for the year to December 2024. That's a notable decrease of 21% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥3.0m.

For comparison, other companies in the Hong Kong Medical Equipment industry with market capitalizations ranging between HK$3.1b and HK$13b had a median total CEO compensation of CN¥4.1m. Accordingly, our analysis reveals that Zylox-Tonbridge Medical Technology Co., Ltd. pays Jonathon Zhao north of the industry median. Moreover, Jonathon Zhao also holds HK$828m worth of Zylox-Tonbridge Medical Technology stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	CN¥3.0m	CN¥3.0m	22%
Other	CN¥11m	CN¥14m	78%
Total Compensation	CN¥14m	CN¥17m	100%

Talking in terms of the industry, salary represented approximately 68% of total compensation out of all the companies we analyzed, while other remuneration made up 32% of the pie. It's interesting to note that Zylox-Tonbridge Medical Technology allocates a smaller portion of compensation to salary 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.

Zylox-Tonbridge Medical Technology Co., Ltd.'s Growth

Zylox-Tonbridge Medical Technology Co., Ltd.'s earnings per share (EPS) grew 85% per year over the last three years. It achieved revenue growth of 48% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Zylox-Tonbridge Medical Technology Co., Ltd. Been A Good Investment?

Boasting a total shareholder return of 72% over three years, Zylox-Tonbridge Medical Technology Co., Ltd. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Zylox-Tonbridge Medical Technology that investors should be aware of in a dynamic business environment.

Switching gears from Zylox-Tonbridge Medical Technology, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.