It Looks Like CMON Limited's (HKG:1792) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• CMON's Annual General Meeting to take place on 26th of June
• Salary of US$245.2k is part of CEO Chern Ann Ng's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, CMON's EPS fell by 69% and over the past three years, the total loss to shareholders 73%

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

The results at CMON Limited (HKG:1792) have been quite disappointing recently and CEO Chern Ann Ng bears some responsibility for this. At the upcoming AGM on 26th of June, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for CMON

How Does Total Compensation For Chern Ann Ng Compare With Other Companies In The Industry?

According to our data, CMON Limited has a market capitalization of HK$25m, and paid its CEO total annual compensation worth US$257k over the year to December 2024. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at US$245.2k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Leisure industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of US$203k. This suggests that CMON remunerates its CEO largely in line with the industry average. What's more, Chern Ann Ng holds HK$6.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 92% of total compensation represents salary and 8% is other remuneration. CMON 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.

A Look at CMON Limited's Growth Numbers

Over the last three years, CMON Limited has shrunk its earnings per share by 69% per year. Its revenue is down 17% over the previous year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. 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 CMON Limited Been A Good Investment?

The return of -73% over three years would not have pleased CMON Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

CMON 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, the board will get the chance to explain the steps it plans to take to improve business performance.

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 did our research and spotted 2 warning signs for CMON that investors should look into moving forward.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.