Some Shareholders May Object To A Pay Rise For Raily Aesthetic Medicine International Holdings Limited's (HKG:2135) CEO This Year
Key Insights
- Raily Aesthetic Medicine International Holdings to hold its Annual General Meeting on 30th of May
- Salary of CN¥693.0k is part of CEO Jianliang Song's total remuneration
- The total compensation is 64% less than the average for the industry
- Over the past three years, Raily Aesthetic Medicine International Holdings' EPS fell by 40% and over the past three years, the total loss to shareholders 87%
The underwhelming performance at Raily Aesthetic Medicine International Holdings Limited (HKG:2135) recently has probably not pleased shareholders. The next AGM coming up on 30th of May will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. From our analysis below, we think CEO compensation looks appropriate for now.
Check out our latest analysis for Raily Aesthetic Medicine International Holdings
How Does Total Compensation For Jianliang Song Compare With Other Companies In The Industry?
According to our data, Raily Aesthetic Medicine International Holdings Limited has a market capitalization of HK$64m, and paid its CEO total annual compensation worth CN¥693k over the year to December 2024. We note that's a decrease of 26% compared to last year. Notably, the salary of CN¥693k is the entirety of the CEO compensation.
In comparison with other companies in the Hong Kong Healthcare industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.9m. This suggests that Jianliang Song is paid below the industry median.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | CN¥693k | CN¥900k | 100% |
| Other | - | CN¥33k | - |
| Total Compensation | CN¥693k | CN¥933k | 100% |
On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. On a company level, Raily Aesthetic Medicine International Holdings prefers to reward its CEO through a salary, opting not to pay Jianliang Song through 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 Raily Aesthetic Medicine International Holdings Limited's Growth Numbers
Over the last three years, Raily Aesthetic Medicine International Holdings Limited has shrunk its earnings per share by 40% per year. It achieved revenue growth of 5.3% over the last year.
Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Raily Aesthetic Medicine International Holdings Limited Been A Good Investment?
Few Raily Aesthetic Medicine International Holdings Limited shareholders would feel satisfied with the return of -87% over three years. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Raily Aesthetic Medicine International Holdings rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Raily Aesthetic Medicine International Holdings you should be aware of, and 2 of them can't be ignored.
Switching gears from Raily Aesthetic Medicine 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.