Key Insights

• Bank of Tianjin to hold its Annual General Meeting on 17th of April
• CEO Hongtao Wu's total compensation includes salary of CN¥519.0k
• The total compensation is 56% less than the average for the industry
• Bank of Tianjin's three-year loss to shareholders was 7.0% while its EPS grew by 6.0% over the past three years

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Shareholders may be wondering what CEO Hongtao Wu plans to do to improve the less than great performance at Bank of Tianjin Co., Ltd. (HKG:1578) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 17th of April. 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.

Check out our latest analysis for Bank of Tianjin

Comparing Bank of Tianjin Co., Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that Bank of Tianjin Co., Ltd. has a market capitalization of HK$11b, and reported total annual CEO compensation of CN¥704k for the year to December 2024. Notably, that's a decrease of 48% over the year before. Notably, the salary which is CN¥519.0k, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Banks industry with market capitalizations ranging between HK$7.8b and HK$25b had a median total CEO compensation of CN¥1.6m. This suggests that Hongtao Wu is paid below the industry median.

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. Bank of Tianjin pays out 74% of remuneration in the form of a salary, significantly higher than the industry average. 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.

Bank of Tianjin Co., Ltd.'s Growth

Bank of Tianjin Co., Ltd.'s earnings per share (EPS) grew 6.0% per year over the last three years. It achieved revenue growth of 5.1% over the last year.

We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Bank of Tianjin Co., Ltd. Been A Good Investment?

With a three year total loss of 7.0% for the shareholders, Bank of Tianjin Co., Ltd. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Flat earnings growth may also be to blame for the uninspiring share price performance. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Bank of Tianjin you should be aware of, and 1 of them can't be ignored.

Switching gears from Bank of Tianjin, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.