This Is Why Kangji Medical Holdings Limited's (HKG:9997) CEO Can Expect A Bump Up In Their Pay Packet

Key Insights

• Kangji Medical Holdings will host its Annual General Meeting on 23rd of May
• Total pay for CEO Ming Zhong includes CN¥1.39m salary
• The total compensation is 59% less than the average for the industry
• Kangji Medical Holdings' total shareholder return over the past three years was 49% while its EPS grew by 8.9% over the past three years

We've discovered 1 warning sign about Kangji Medical Holdings. View them for free.

The decent performance at Kangji Medical Holdings Limited (HKG:9997) recently will please most shareholders as they go into the AGM coming up on 23rd of May. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

Check out our latest analysis for Kangji Medical Holdings

How Does Total Compensation For Ming Zhong Compare With Other Companies In The Industry?

According to our data, Kangji Medical Holdings Limited has a market capitalization of HK$9.4b, and paid its CEO total annual compensation worth CN¥1.4m over the year to December 2024. That's a notable increase of 16% on last year. Notably, the salary which is CN¥1.39m, represents most of the total compensation being paid.

On comparing similar companies from the Hong Kong Medical Equipment industry with market caps ranging from HK$7.8b to HK$25b, we found that the median CEO total compensation was CN¥3.5m. That is to say, Ming Zhong is paid under the industry median. Furthermore, Ming Zhong directly owns HK$3.2b 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¥1.2m	98%
Other	CN¥35k	CN¥47k	2%
Total Compensation	CN¥1.4m	CN¥1.2m	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. Kangji Medical Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Kangji Medical Holdings Limited's Growth

Kangji Medical Holdings Limited's earnings per share (EPS) grew 8.9% per year over the last three years. Its revenue is up 8.9% over the last year.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Kangji Medical Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Kangji Medical Holdings Limited for providing a total return of 49% over three years. 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.

In Summary...

Ming receives almost all of their compensation through a salary. Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Kangji Medical Holdings that investors should be aware of in a dynamic business environment.

Switching gears from Kangji Medical 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.