Shareholders May Not Be So Generous With Regina Miracle International (Holdings) Limited's (HKG:2199) CEO Compensation And Here's Why

Key Insights

• Regina Miracle International (Holdings) to hold its Annual General Meeting on 13th of September
• Total pay for CEO YY Hung includes HK$9.10m salary
• The overall pay is 133% above the industry average
• Regina Miracle International (Holdings)'s EPS grew by 9.7% over the past three years while total shareholder return over the past three years was 25%

Under the guidance of CEO YY Hung, Regina Miracle International (Holdings) Limited (HKG:2199) has performed reasonably well recently. As shareholders go into the upcoming AGM on 13th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Regina Miracle International (Holdings)

Comparing Regina Miracle International (Holdings) Limited's CEO Compensation With The Industry

According to our data, Regina Miracle International (Holdings) Limited has a market capitalization of HK$3.2b, and paid its CEO total annual compensation worth HK$9.2m over the year to March 2023. This was the same amount the CEO received in the prior year. Notably, the salary which is HK$9.10m, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Luxury industry with market capitalizations ranging between HK$1.6b and HK$6.3b had a median total CEO compensation of HK$3.9m. This suggests that YY Hung is paid more than the median for the industry. Furthermore, YY Hung directly owns HK$2.2b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	HK$9.1m	HK$9.1m	99%
Other	HK$54k	HK$54k	1%
Total Compensation	HK$9.2m	HK$9.2m	100%

On an industry level, roughly 91% of total compensation represents salary and 9% is other remuneration. Regina Miracle International (Holdings) has gone down a largely traditional route, paying YY Hung a high salary, giving it preference over non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Regina Miracle International (Holdings) Limited's Growth Numbers

Regina Miracle International (Holdings) Limited's earnings per share (EPS) grew 9.7% per year over the last three years. It saw its revenue drop 5.6% over the last year.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Regina Miracle International (Holdings) Limited Been A Good Investment?

Regina Miracle International (Holdings) Limited has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

YY receives almost all of their compensation through a salary. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for Regina Miracle International (Holdings) you should be aware of, and 1 of them is a bit unpleasant.

Important note: Regina Miracle 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.