Shareholders Will Probably Not Have Any Issues With Nameson Holdings Limited's (HKG:1982) CEO Compensation

Key Insights

• Nameson Holdings' Annual General Meeting to take place on 29th of September
• CEO Yu Hin Man's total compensation includes salary of HK$1.44m
• The total compensation is similar to the average for the industry
• Nameson Holdings' EPS grew by 9.1% over the past three years while total shareholder return over the past three years was 240%

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Under the guidance of CEO Yu Hin Man, Nameson Holdings Limited (HKG:1982) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29th of September. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Nameson Holdings

How Does Total Compensation For Yu Hin Man Compare With Other Companies In The Industry?

According to our data, Nameson Holdings Limited has a market capitalization of HK$2.0b, and paid its CEO total annual compensation worth HK$4.8m over the year to March 2025. This was the same amount the CEO received in the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$1.4m.

On examining similar-sized companies in the Hong Kong Luxury industry with market capitalizations between HK$777m and HK$3.1b, we discovered that the median CEO total compensation of that group was HK$3.9m. This suggests that Nameson Holdings remunerates its CEO largely in line with the industry average.

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Nameson Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Nameson Holdings Limited's Growth

Nameson Holdings Limited has seen its earnings per share (EPS) increase by 9.1% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Nameson Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Nameson Holdings Limited for providing a total return of 240% over three years. 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.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Nameson Holdings that investors should look into moving forward.

Important note: Nameson 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.