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We Think Some Shareholders May Hesitate To Increase Regina Miracle International (Holdings) Limited's (HKG:2199) CEO Compensation

Simply Wall St ·  Sep 6, 2023 18:07

Key Insights

  • Regina Miracle International (Holdings)'s Annual General Meeting to take place on 13th of September
  • Total pay for CEO YY Hung includes HK$9.10m salary
  • The total compensation is 133% higher than the average for the industry
  • Regina Miracle International (Holdings)'s total shareholder return over the past three years was 25% while its EPS grew by 9.7% over the past three years

Under the guidance of CEO YY Hung, Regina Miracle International (Holdings) Limited (HKG:2199) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 13th of September. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Regina Miracle International (Holdings)

How Does Total Compensation For YY Hung Compare With Other Companies In The Industry?

Our data indicates that Regina Miracle International (Holdings) Limited has a market capitalization of HK$3.2b, and total annual CEO compensation was reported as HK$9.2m for the year to March 2023. This was the same as last year. Notably, the salary which is HK$9.10m, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Luxury industry with market capitalizations ranging between HK$1.6b and HK$6.3b had a median total CEO compensation of HK$3.9m. Accordingly, our analysis reveals that Regina Miracle International (Holdings) Limited pays YY Hung north of the industry median. What's more, YY Hung holds HK$2.2b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20232022Proportion (2023)
Salary HK$9.1m HK$9.1m 99%
Other HK$54k HK$54k 1%
Total CompensationHK$9.2m HK$9.2m100%

Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9% of the pie. Regina Miracle International (Holdings) is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. 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.

ceo-compensation
SEHK:2199 CEO Compensation September 6th 2023

A Look at Regina Miracle International (Holdings) Limited's Growth Numbers

Regina Miracle International (Holdings) Limited has seen its earnings per share (EPS) increase by 9.7% a year over the past three years. In the last year, its revenue is down 5.6%.

We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Regina Miracle International (Holdings) Limited Been A Good Investment?

Regina Miracle International (Holdings) Limited has served shareholders reasonably well, with a total return of 25% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Regina Miracle International (Holdings) pays its CEO a majority of compensation through a salary. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for Regina Miracle International (Holdings) (1 is concerning!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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