Here's What We Think About M&L Holdings Group's (HKG:8152) CEO Pay

The CEO of M&L Holdings Group Limited (HKG:8152) is Lai Ming Ng, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for M&L Holdings Group.

Check out our latest analysis for M&L Holdings Group

How Does Total Compensation For Lai Ming Ng Compare With Other Companies In The Industry?

Our data indicates that M&L Holdings Group Limited has a market capitalization of HK$55m, and total annual CEO compensation was reported as HK$993k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. In particular, the salary of HK$975.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.4m. In other words, M&L Holdings Group pays its CEO lower than the industry median. Furthermore, Lai Ming Ng directly owns HK$33m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 92% of total compensation represents salary and 7.7% is other remuneration. M&L Holdings Group 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 dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

M&L Holdings Group Limited's Growth

M&L Holdings Group Limited's earnings per share (EPS) grew 3.9% per year over the last three years. Its revenue is down 36% over the previous year.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 M&L Holdings Group Limited Been A Good Investment?

Since shareholders would have lost about 68% over three years, some M&L Holdings Group Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

Lai Ming receives almost all of their compensation through a salary. As previously discussed, Lai Ming is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the EPS growth is lacking, just like the returns (over three years). So while we don't think, Lai Ming is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 2 which are concerning) in M&L Holdings Group we think you should know about.

Important note: M&L Holdings Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. 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.
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