Shareholders Will Probably Hold Off On Increasing Regina Miracle International (Holdings) Limited's (HKG:2199) CEO Compensation For The Time Being

Key Insights

• Regina Miracle International (Holdings) to hold its Annual General Meeting on 11th of September
• CEO YY Hung's total compensation includes salary of HK$9.10m
• The overall pay is 121% above the industry average
• Regina Miracle International (Holdings)'s three-year loss to shareholders was 15% while its EPS grew by 4.5% over the past three years

Shareholders of Regina Miracle International (Holdings) Limited (HKG:2199) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 11th of September could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View 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$2.7b, and paid its CEO total annual compensation worth HK$9.2m over the year to March 2024. There was no change in the compensation compared to last 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$6.2b had a median total CEO compensation of HK$4.1m. This suggests that YY Hung is paid more than the median for the industry. Furthermore, YY Hung directly owns HK$1.8b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	HK$9.1m	HK$9.1m	99%
Other	HK$54k	HK$54k	1%
Total Compensation	HK$9.2m	HK$9.2m	100%

Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9% of the pie. Investors will find it interesting that Regina Miracle International (Holdings) pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

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

Regina Miracle International (Holdings) Limited's earnings per share (EPS) grew 4.5% per year over the last three years. It saw its revenue drop 11% over the last year.

We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

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

With a three year total loss of 15% for the shareholders, Regina Miracle International (Holdings) Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Regina Miracle International (Holdings) pays its CEO a majority of compensation through a salary. Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Regina Miracle International (Holdings) (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Regina Miracle International (Holdings), if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.