Shanghai INT Medical Instruments Co., Ltd.'s (HKG:1501) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Shanghai INT Medical Instruments to hold its Annual General Meeting on 23rd of May
• CEO Dongke Liang's total compensation includes salary of CN¥1.38m
• The total compensation is similar to the average for the industry
• Shanghai INT Medical Instruments' total shareholder return over the past three years was 82% while its EPS grew by 6.1% over the past three years

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Performance at Shanghai INT Medical Instruments Co., Ltd. (HKG:1501) has been reasonably good and CEO Dongke Liang has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 23rd of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Shanghai INT Medical Instruments

How Does Total Compensation For Dongke Liang Compare With Other Companies In The Industry?

According to our data, Shanghai INT Medical Instruments Co., Ltd. has a market capitalization of HK$4.7b, and paid its CEO total annual compensation worth CN¥5.1m over the year to December 2024. We note that's a decrease of 17% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥1.4m.

In comparison with other companies in the Hong Kong Medical Equipment industry with market capitalizations ranging from HK$1.6b to HK$6.3b, the reported median CEO total compensation was CN¥4.4m. So it looks like Shanghai INT Medical Instruments compensates Dongke Liang in line with the median for the industry. Furthermore, Dongke Liang directly owns HK$319m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	CN¥1.4m	CN¥1.3m	27%
Other	CN¥3.7m	CN¥4.8m	73%
Total Compensation	CN¥5.1m	CN¥6.1m	100%

Talking in terms of the industry, salary represented approximately 68% of total compensation out of all the companies we analyzed, while other remuneration made up 32% of the pie. Shanghai INT Medical Instruments pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Shanghai INT Medical Instruments Co., Ltd.'s Growth

Shanghai INT Medical Instruments Co., Ltd.'s earnings per share (EPS) grew 6.1% per year over the last three years. It achieved revenue growth of 13% over the last year.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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 Shanghai INT Medical Instruments Co., Ltd. Been A Good Investment?

We think that the total shareholder return of 82%, over three years, would leave most Shanghai INT Medical Instruments Co., Ltd. shareholders smiling. 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.

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. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

Whatever your view on compensation, you might want to check if insiders are buying or selling Shanghai INT Medical Instruments shares (free trial).

Important note: Shanghai INT Medical Instruments 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.