We Think Shareholders May Want To Consider A Review Of Man King Holdings Limited's (HKG:2193) CEO Compensation Package

Key Insights

• Man King Holdings to hold its Annual General Meeting on 28th of August
• Total pay for CEO Yuen Cheong Lo includes HK$4.17m salary
• Total compensation is 100% above industry average
• Man King Holdings' three-year loss to shareholders was 22% while its EPS was down 33% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at Man King Holdings Limited (HKG:2193) recently. At the upcoming AGM on 28th of August, shareholders can hear from the board including their plans for turning around performance. 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. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Man King Holdings

Comparing Man King Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Man King Holdings Limited has a market capitalization of HK$75m, and reported total annual CEO compensation of HK$4.6m for the year to March 2024. That's slightly lower by 3.6% over the previous year. In particular, the salary of HK$4.17m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Construction industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.3m. This suggests that Yuen Cheong Lo is paid more than the median for the industry. Moreover, Yuen Cheong Lo also holds HK$844k worth of Man King Holdings stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	HK$4.2m	HK$4.3m	91%
Other	HK$402k	HK$394k	9%
Total Compensation	HK$4.6m	HK$4.7m	100%

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Man King Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Man King Holdings Limited's Growth Numbers

Man King Holdings Limited has reduced its earnings per share by 33% a year over the last three years. It saw its revenue drop 25% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Man King Holdings Limited Been A Good Investment?

Since shareholders would have lost about 22% over three years, some Man King Holdings Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Man King Holdings that investors should be aware of in a dynamic business environment.

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.

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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.