Matrix Holdings Limited's (HKG:1005) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Matrix Holdings' Annual General Meeting to take place on 15th of May
• CEO Hiu Har Yip's total compensation includes salary of HK$3.25m
• The total compensation is 107% higher than the average for the industry
• Over the past three years, Matrix Holdings' EPS fell by 113% and over the past three years, the total loss to shareholders 76%

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The results at Matrix Holdings Limited (HKG:1005) have been quite disappointing recently and CEO Hiu Har Yip bears some responsibility for this. At the upcoming AGM on 15th of May, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Matrix Holdings

How Does Total Compensation For Hiu Har Yip Compare With Other Companies In The Industry?

At the time of writing, our data shows that Matrix Holdings Limited has a market capitalization of HK$469m, and reported total annual CEO compensation of HK$3.3m for the year to December 2024. This was the same amount the CEO received in the prior year. In particular, the salary of HK$3.25m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Leisure industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.6m. Hence, we can conclude that Hiu Har Yip is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	HK$3.3m	HK$3.3m	99%
Other	HK$18k	HK$18k	1%
Total Compensation	HK$3.3m	HK$3.3m	100%

Talking in terms of the industry, salary represented approximately 92% of total compensation out of all the companies we analyzed, while other remuneration made up 8% of the pie. Matrix Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Matrix Holdings Limited's Growth

Matrix Holdings Limited has reduced its earnings per share by 113% a year over the last three years. Its revenue is down 36% over the previous 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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Matrix Holdings Limited Been A Good Investment?

Few Matrix Holdings Limited shareholders would feel satisfied with the return of -76% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Matrix Holdings pays its CEO a majority of compensation through a salary. 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.

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. That's why we did our research, and identified 4 warning signs for Matrix Holdings (of which 2 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.

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.