Sino-Entertainment Technology Holdings Limited's (HKG:6933) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Sino-Entertainment Technology Holdings will host its Annual General Meeting on 17th of June
• Total pay for CEO Tao Li includes CN¥45.0k salary
• The overall pay is 62% below the industry average
• Sino-Entertainment Technology Holdings' EPS declined by 24% over the past three years while total shareholder loss over the past three years was 97%

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The performance at Sino-Entertainment Technology Holdings Limited (HKG:6933) has been rather lacklustre of late and shareholders may be wondering what CEO Tao Li is planning to do about this. At the next AGM coming up on 17th of June, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for Sino-Entertainment Technology Holdings

Comparing Sino-Entertainment Technology Holdings Limited's CEO Compensation With The Industry

Our data indicates that Sino-Entertainment Technology Holdings Limited has a market capitalization of HK$63m, and total annual CEO compensation was reported as CN¥678k for the year to December 2024. Notably, that's an increase of 11% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at CN¥45k.

On comparing similar-sized companies in the Hong Kong Entertainment industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥1.8m. Accordingly, Sino-Entertainment Technology Holdings pays its CEO under the industry median. What's more, Tao Li holds HK$44k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	CN¥45k	CN¥46k	7%
Other	CN¥633k	CN¥563k	93%
Total Compensation	CN¥678k	CN¥609k	100%

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Sino-Entertainment Technology Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Sino-Entertainment Technology Holdings Limited's Growth Numbers

Over the last three years, Sino-Entertainment Technology Holdings Limited has shrunk its earnings per share by 24% per year. It achieved revenue growth of 396% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Sino-Entertainment Technology Holdings Limited Been A Good Investment?

Few Sino-Entertainment Technology Holdings Limited shareholders would feel satisfied with the return of -97% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders have earned a negative share price return is certainly disconcerting. The downward trend in share price performance may be attributable to the the fact that earnings growth has gone backwards. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

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 3 warning signs for Sino-Entertainment Technology Holdings that investors should be aware of in a dynamic business environment.

Switching gears from Sino-Entertainment Technology Holdings, 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.