Shareholders May Not Be So Generous With Sing Tao News Corporation Limited's (HKG:1105) CEO Compensation And Here's Why

Key Insights

• Sing Tao News' Annual General Meeting to take place on 16th of May
• Salary of HK$1.59m is part of CEO Hiu Ting Kwok's total remuneration
• The total compensation is similar to the average for the industry
• Sing Tao News' three-year loss to shareholders was 46% while its EPS grew by 41% over the past three years

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Shareholders of Sing Tao News Corporation Limited (HKG:1105) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 16th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Sing Tao News

How Does Total Compensation For Hiu Ting Kwok Compare With Other Companies In The Industry?

Our data indicates that Sing Tao News Corporation Limited has a market capitalization of HK$181m, and total annual CEO compensation was reported as HK$1.6m for the year to December 2024. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at HK$1.59m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Media industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.8m. So it looks like Sing Tao News compensates Hiu Ting Kwok in line with the median for the industry. What's more, Hiu Ting Kwok holds HK$26m 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	HK$1.6m	HK$1.6m	99%
Other	HK$21k	HK$21k	1%
Total Compensation	HK$1.6m	HK$1.6m	100%

Talking in terms of the industry, salary represented approximately 83% of total compensation out of all the companies we analyzed, while other remuneration made up 17% of the pie. Sing Tao News is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. 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 Sing Tao News Corporation Limited's Growth Numbers

Sing Tao News Corporation Limited's earnings per share (EPS) grew 41% per year over the last three years. It saw its revenue drop 5.2% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Sing Tao News Corporation Limited Been A Good Investment?

The return of -46% over three years would not have pleased Sing Tao News Corporation Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Hiu Ting receives almost all of their compensation through a salary. The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for Sing Tao News (1 is concerning!) that you should be aware of before investing here.

Switching gears from Sing Tao News, 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.