Here's Why Shareholders May Want To Be Cautious With Increasing Medlive Technology Co., Ltd.'s (HKG:2192) CEO Pay Packet

Key Insights

• Medlive Technology's Annual General Meeting to take place on 8th of May
• Total pay for CEO Liping Tian includes CN¥2.08m salary
• The overall pay is 159% above the industry average
• Over the past three years, Medlive Technology's EPS grew by 87% and over the past three years, the total shareholder return was 46%

We've discovered 2 warning signs about Medlive Technology. View them for free.

CEO Liping Tian has done a decent job of delivering relatively good performance at Medlive Technology Co., Ltd. (HKG:2192) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 8th of May. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Medlive Technology

Comparing Medlive Technology Co., Ltd.'s CEO Compensation With The Industry

Our data indicates that Medlive Technology Co., Ltd. has a market capitalization of HK$8.9b, and total annual CEO compensation was reported as CN¥3.7m for the year to December 2024. Notably, that's a decrease of 24% over the year before. Notably, the salary which is CN¥2.08m, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the Hong Kong Healthcare Services industry with market capitalizations ranging from HK$3.1b to HK$12b, the reported median CEO total compensation was CN¥1.4m. Accordingly, our analysis reveals that Medlive Technology Co., Ltd. pays Liping Tian north of the industry median. What's more, Liping Tian holds HK$97m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	CN¥2.1m	CN¥1.7m	57%
Other	CN¥1.6m	CN¥3.1m	43%
Total Compensation	CN¥3.7m	CN¥4.8m	100%

On an industry level, around 57% of total compensation represents salary and 43% is other remuneration. Medlive Technology 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.

A Look at Medlive Technology Co., Ltd.'s Growth Numbers

Medlive Technology Co., Ltd.'s earnings per share (EPS) grew 87% per year over the last three years. Its revenue is up 36% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Medlive Technology Co., Ltd. Been A Good Investment?

We think that the total shareholder return of 46%, over three years, would leave most Medlive Technology Co., Ltd. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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 pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which shouldn't be ignored) in Medlive Technology we think you should know about.

Switching gears from Medlive Technology, 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.