Key Insights

• Hin Sang Group (International) Holding to hold its Annual General Meeting on 28th of September
• CEO Siu Hin Pang's total compensation includes salary of HK$2.56m
• Total compensation is similar to the industry average
• Over the past three years, Hin Sang Group (International) Holding's EPS fell by 0.8% and over the past three years, the total loss to shareholders 40%

Shareholders will probably not be too impressed with the underwhelming results at Hin Sang Group (International) Holding Co. Ltd. (HKG:6893) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 28th of September. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Hin Sang Group (International) Holding

Comparing Hin Sang Group (International) Holding Co. Ltd.'s CEO Compensation With The Industry

Our data indicates that Hin Sang Group (International) Holding Co. Ltd. has a market capitalization of HK$415m, and total annual CEO compensation was reported as HK$2.6m for the year to March 2023. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is HK$2.56m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Personal Products industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.8m. So it looks like Hin Sang Group (International) Holding compensates Siu Hin Pang in line with the median for the industry.

Talking in terms of the industry, salary represented approximately 71% of total compensation out of all the companies we analyzed, while other remuneration made up 29% of the pie. Hin Sang Group (International) Holding has gone down a largely traditional route, paying Siu Hin Pang a high salary, giving it preference over non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Hin Sang Group (International) Holding Co. Ltd.'s Growth Numbers

Over the last three years, Hin Sang Group (International) Holding Co. Ltd. has not seen its earnings per share change much, though they have deteriorated slightly. It saw its revenue drop 32% over the last year.

Its a bit disappointing to see that the company has failed to grow its EPS. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Hin Sang Group (International) Holding Co. Ltd. Been A Good Investment?

With a total shareholder return of -40% over three years, Hin Sang Group (International) Holding Co. Ltd. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Siu Hin receives almost all of their compensation through a salary. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Hin Sang Group (International) Holding (2 can't be ignored!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.