We Think Shareholders May Want To Consider A Review Of UMP Healthcare Holdings Limited's (HKG:722) CEO Compensation Package

Key Insights

• UMP Healthcare Holdings to hold its Annual General Meeting on 21st of November
• Salary of HK$5.20m is part of CEO Jacquen Kwok's total remuneration
• Total compensation is 194% above industry average
• UMP Healthcare Holdings' three-year loss to shareholders was 26% while its EPS was down 25% over the past three years

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The results at UMP Healthcare Holdings Limited (HKG:722) have been quite disappointing recently and CEO Jacquen Kwok bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 21st of November. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for UMP Healthcare Holdings

Comparing UMP Healthcare Holdings Limited's CEO Compensation With The Industry

Our data indicates that UMP Healthcare Holdings Limited has a market capitalization of HK$373m, and total annual CEO compensation was reported as HK$5.9m for the year to June 2025. That's just a smallish increase of 7.0% on last year. In particular, the salary of HK$5.20m, makes up a huge portion of the total compensation being paid to the CEO.

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 HK$2.0m. This suggests that Jacquen Kwok is paid more than the median for the industry. Furthermore, Jacquen Kwok directly owns HK$9.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. UMP Healthcare Holdings pays out 89% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

UMP Healthcare Holdings Limited's Growth

Over the last three years, UMP Healthcare Holdings Limited has shrunk its earnings per share by 25% per year. In the last year, its revenue is down 3.0%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet 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 UMP Healthcare Holdings Limited Been A Good Investment?

Since shareholders would have lost about 26% over three years, some UMP Healthcare Holdings Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for UMP Healthcare Holdings (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.