Should Shareholders Reconsider Hing Ming Holdings Limited's (HKG:8425) CEO Compensation Package?

Key Insights

• Hing Ming Holdings to hold its Annual General Meeting on 27th of August
• CEO Hing Keung Tang's total compensation includes salary of HK$7.20m
• The total compensation is 354% higher than the average for the industry
• Over the past three years, Hing Ming Holdings' EPS fell by 112% and over the past three years, the total loss to shareholders 78%

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The results at Hing Ming Holdings Limited (HKG:8425) have been quite disappointing recently and CEO Hing Keung Tang bears some responsibility for this. At the upcoming AGM on 27th 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. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Hing Ming Holdings

How Does Total Compensation For Hing Keung Tang Compare With Other Companies In The Industry?

At the time of writing, our data shows that Hing Ming Holdings Limited has a market capitalization of HK$21m, and reported total annual CEO compensation of HK$9.2m for the year to March 2025. We note that's a decrease of 23% compared to last year. Notably, the salary which is HK$7.20m, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Trade Distributors industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.0m. This suggests that Hing Keung Tang is paid more than the median for the industry.

Speaking on an industry level, nearly 92% of total compensation represents salary, while the remainder of 8% is other remuneration. Hing Ming Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Hing Ming Holdings Limited's Growth

Over the last three years, Hing Ming Holdings Limited has shrunk its earnings per share by 112% per year. It saw its revenue drop 1.6% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Hing Ming Holdings Limited Been A Good Investment?

Few Hing Ming Holdings Limited shareholders would feel satisfied with the return of -78% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Hing Ming Holdings that investors should think about before committing capital to this stock.

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.