Shareholders Will Probably Hold Off On Increasing Best Mart 360 Holdings Limited's (HKG:2360) CEO Compensation For The Time Being

Key Insights

• Best Mart 360 Holdings' Annual General Meeting to take place on 28th of May
• Total pay for CEO Chi Kwan Hui includes HK$3.85m salary
• The overall pay is 128% above the industry average
• Over the past three years, Best Mart 360 Holdings' EPS grew by 41% and over the past three years, the total shareholder return was 49%

We've discovered 1 warning sign about Best Mart 360 Holdings. View them for free.

Performance at Best Mart 360 Holdings Limited (HKG:2360) has been reasonably good and CEO Chi Kwan Hui has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 28th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Best Mart 360 Holdings

How Does Total Compensation For Chi Kwan Hui Compare With Other Companies In The Industry?

Our data indicates that Best Mart 360 Holdings Limited has a market capitalization of HK$1.8b, and total annual CEO compensation was reported as HK$5.8m for the year to December 2024. Notably, that's an increase of 50% over the year before. We note that the salary portion, which stands at HK$3.85m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Consumer Retailing industry with market capitalizations ranging from HK$783m to HK$3.1b, the reported median CEO total compensation was HK$2.5m. This suggests that Chi Kwan Hui is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	HK$3.9m	HK$2.6m	67%
Other	HK$1.9m	HK$1.3m	33%
Total Compensation	HK$5.8m	HK$3.8m	100%

On an industry level, around 72% of total compensation represents salary and 28% is other remuneration. Best Mart 360 Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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.

Best Mart 360 Holdings Limited's Growth

Best Mart 360 Holdings Limited has seen its earnings per share (EPS) increase by 41% a year over the past three years. It achieved revenue growth of 45% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Best Mart 360 Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 49% over three years, Best Mart 360 Holdings Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 1 warning sign for Best Mart 360 Holdings that investors should be aware of in a dynamic business environment.

Important note: Best Mart 360 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.