Shareholders Will Probably Hold Off On Increasing C-MER Eye Care Holdings Limited's (HKG:3309) CEO Compensation For The Time Being

Key Insights

• C-MER Eye Care Holdings' Annual General Meeting to take place on 28th of May
• Total pay for CEO Dennis Lam includes HK$5.76m salary
• Total compensation is 131% above industry average
• Over the past three years, C-MER Eye Care Holdings' EPS grew by 9.7% and over the past three years, the total loss to shareholders 48%

In the past three years, the share price of C-MER Eye Care Holdings Limited (HKG:3309) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 28th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for C-MER Eye Care Holdings

Comparing C-MER Eye Care Holdings Limited's CEO Compensation With The Industry

According to our data, C-MER Eye Care Holdings Limited has a market capitalization of HK$3.8b, and paid its CEO total annual compensation worth HK$6.0m over the year to December 2023. This was the same as last year. Notably, the salary which is HK$5.76m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Healthcare industry with market capitalizations ranging from HK$1.6b to HK$6.2b, the reported median CEO total compensation was HK$2.6m. Accordingly, our analysis reveals that C-MER Eye Care Holdings Limited pays Dennis Lam north of the industry median. What's more, Dennis Lam holds HK$28m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	HK$5.8m	HK$5.8m	96%
Other	HK$258k	HK$258k	4%
Total Compensation	HK$6.0m	HK$6.0m	100%

Speaking on an industry level, nearly 72% of total compensation represents salary, while the remainder of 28% is other remuneration. C-MER Eye Care Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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.

C-MER Eye Care Holdings Limited's Growth

C-MER Eye Care Holdings Limited's earnings per share (EPS) grew 9.7% per year over the last three years. Its revenue is up 11% over the last year.

We would argue that the modest growth in revenue is a notable positive. And, while modest, the EPS growth is noticeable. 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 C-MER Eye Care Holdings Limited Been A Good Investment?

Few C-MER Eye Care Holdings Limited shareholders would feel satisfied with the return of -48% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

C-MER Eye Care Holdings pays its CEO a majority of compensation through a salary. Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

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. That's why we did some digging and identified 1 warning sign for C-MER Eye Care Holdings that you should be aware of before investing.

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.