It's Unlikely That Medialink Group Limited's (HKG:2230) CEO Will See A Huge Pay Rise This Year

Key Insights

• Medialink Group to hold its Annual General Meeting on 19th of September
• CEO Lovinia Chiu's total compensation includes salary of HK$5.32m
• The overall pay is 371% above the industry average
• Medialink Group's total shareholder return over the past three years was 82% while its EPS grew by 8.1% over the past three years

Under the guidance of CEO Lovinia Chiu, Medialink Group Limited (HKG:2230) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 19th of September. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Medialink Group

Comparing Medialink Group Limited's CEO Compensation With The Industry

Our data indicates that Medialink Group Limited has a market capitalization of HK$384m, and total annual CEO compensation was reported as HK$15m for the year to March 2023. We note that's an increase of 59% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$5.3m.

For comparison, other companies in the Hong Kong Interactive Media and Services industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$3.3m. Accordingly, our analysis reveals that Medialink Group Limited pays Lovinia Chiu north of the industry median. Moreover, Lovinia Chiu also holds HK$274m worth of Medialink Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	HK$5.3m	HK$5.2m	35%
Other	HK$10m	HK$4.4m	65%
Total Compensation	HK$15m	HK$9.6m	100%

On an industry level, roughly 38% of total compensation represents salary and 62% is other remuneration. Our data reveals that Medialink Group allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Medialink Group Limited's Growth Numbers

Medialink Group Limited's earnings per share (EPS) grew 8.1% per year over the last three years. In the last year, its revenue is up 19%.

We would argue that the modest growth in revenue is a notable positive. And the improvement in EPSis modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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 Medialink Group Limited Been A Good Investment?

We think that the total shareholder return of 82%, over three years, would leave most Medialink Group Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Medialink Group (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Medialink Group, 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.