Shareholders May Be Wary Of Increasing Ngai Hing Hong Company Limited's (HKG:1047) CEO Compensation Package

Key Insights

• Ngai Hing Hong will host its Annual General Meeting on 20th of November
• Total pay for CEO Kwok Kwong Hui includes HK$2.42m salary
• Total compensation is 313% above industry average
• Ngai Hing Hong's EPS declined by 82% over the past three years while total shareholder loss over the past three years was 24%

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Shareholders will probably not be too impressed with the underwhelming results at Ngai Hing Hong Company Limited (HKG:1047) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 20th of November. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Ngai Hing Hong

Comparing Ngai Hing Hong Company Limited's CEO Compensation With The Industry

According to our data, Ngai Hing Hong Company Limited has a market capitalization of HK$129m, and paid its CEO total annual compensation worth HK$4.5m over the year to June 2025. This means that the compensation hasn't changed much from last year. Notably, the salary which is HK$2.42m, represents a considerable chunk of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Chemicals industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.1m. Accordingly, our analysis reveals that Ngai Hing Hong Company Limited pays Kwok Kwong Hui north of the industry median. Furthermore, Kwok Kwong Hui directly owns HK$6.9m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 86% of total compensation represents salary and 14% is other remuneration. Ngai Hing Hong pays a modest slice of remuneration through salary, as compared to the broader industry. 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 Ngai Hing Hong Company Limited's Growth Numbers

Ngai Hing Hong Company Limited has reduced its earnings per share by 82% a year over the last three years. Its revenue is up 5.7% 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. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Ngai Hing Hong Company Limited Been A Good Investment?

Since shareholders would have lost about 24% over three years, some Ngai Hing Hong Company Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

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. We did our research and spotted 3 warning signs for Ngai Hing Hong that investors should look into moving forward.

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.