Here's Why It's Unlikely That Minsheng Education Group Company Limited's (HKG:1569) CEO Will See A Pay Rise This Year
Key Insights
- Minsheng Education Group's Annual General Meeting to take place on 2nd of June
- Total pay for CEO Weiping Zhang includes CN¥7.44m salary
- Total compensation is 249% above industry average
- Minsheng Education Group's three-year loss to shareholders was 61% while its EPS was down 87% over the past three years
Shareholders will probably not be too impressed with the underwhelming results at Minsheng Education Group Company Limited (HKG:1569) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 2nd of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.
Check out our latest analysis for Minsheng Education Group
Comparing Minsheng Education Group Company Limited's CEO Compensation With The Industry
At the time of writing, our data shows that Minsheng Education Group Company Limited has a market capitalization of HK$666m, and reported total annual CEO compensation of CN¥7.4m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary of CN¥7.4m is the entirety of the CEO compensation.
On comparing similar-sized companies in the Hong Kong Consumer Services industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥2.1m. This suggests that Weiping Zhang is paid more than the median for the industry.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | CN¥7.4m | CN¥7.3m | 100% |
| Other | - | CN¥245k | - |
| Total Compensation | CN¥7.4m | CN¥7.6m | 100% |
On an industry level, around 81% of total compensation represents salary and 19% is other remuneration. Speaking on a company level, Minsheng Education Group prefers to tread along a traditional path, disbursing all compensation through a salary. 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 Minsheng Education Group Company Limited's Growth Numbers
Over the last three years, Minsheng Education Group Company Limited has shrunk its earnings per share by 87% per year. In the last year, its revenue is down 17%.
Overall this is not a very positive result for shareholders. 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Minsheng Education Group Company Limited Been A Good Investment?
Few Minsheng Education Group Company Limited shareholders would feel satisfied with the return of -61% over three years. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Minsheng Education Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 1 which is concerning) in Minsheng Education Group we think you should know about.
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.
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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.