Miko International Holdings Limited's (HKG:1247) CEO Looks Due For A Compensation Raise

Key Insights

• Miko International Holdings to hold its Annual General Meeting on 18th of June
• Total pay for CEO Peiji Ding includes CN¥628.0k salary
• The overall pay is 66% below the industry average
• Miko International Holdings' total shareholder return over the past three years was 137% while its EPS grew by 98% over the past three years

Shareholders will be pleased by the impressive results for Miko International Holdings Limited (HKG:1247) recently and CEO Peiji Ding has played a key role. At the upcoming AGM on 18th of June, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for Miko International Holdings

Comparing Miko International Holdings Limited's CEO Compensation With The Industry

Our data indicates that Miko International Holdings Limited has a market capitalization of HK$267m, and total annual CEO compensation was reported as CN¥638k for the year to December 2023. That's a slight decrease of 7.3% on the prior year. Notably, the salary which is CN¥628.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Luxury industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥1.9m. This suggests that Peiji Ding is paid below the industry median. Moreover, Peiji Ding also holds HK$36m worth of Miko International Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	CN¥628k	CN¥678k	98%
Other	CN¥10k	CN¥10k	2%
Total Compensation	CN¥638k	CN¥688k	100%

On an industry level, roughly 94% of total compensation represents salary and 6% is other remuneration. Miko International Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Miko International Holdings Limited's Growth

Miko International Holdings Limited has seen its earnings per share (EPS) increase by 98% a year over the past three years. It achieved revenue growth of 5.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Miko International Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 137% over three years, Miko International Holdings Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Miko International Holdings pays its CEO a majority of compensation through a salary. Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Miko International Holdings that investors should be aware of in a dynamic business environment.

Important note: Miko International Holdings 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. 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.