Should Shareholders Reconsider Media Chinese International Limited's (HKG:685) CEO Compensation Package?

Key Insights

• Media Chinese International to hold its Annual General Meeting on 16th of August
• Total pay for CEO Francis Tiong includes US$320.0k salary
• Total compensation is 68% above industry average
• Media Chinese International's three-year loss to shareholders was 31% while its EPS was down 112% over the past three years

Media Chinese International Limited (HKG:685) has not performed well recently and CEO Francis Tiong will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 16th of August. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Media Chinese International

Comparing Media Chinese International Limited's CEO Compensation With The Industry

According to our data, Media Chinese International Limited has a market capitalization of HK$331m, and paid its CEO total annual compensation worth US$445k over the year to March 2024. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at US$320.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Media industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of US$265k. Accordingly, our analysis reveals that Media Chinese International Limited pays Francis Tiong north of the industry median. What's more, Francis Tiong holds HK$1.3m 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	US$320k	US$326k	72%
Other	US$125k	US$113k	28%
Total Compensation	US$445k	US$439k	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. Media Chinese International sets aside a smaller share of compensation for salary, in comparison to the overall 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.

Media Chinese International Limited's Growth

Over the last three years, Media Chinese International Limited has shrunk its earnings per share by 112% per year. Its revenue is up 11% over the last year.

Few shareholders would be pleased to read that EPS have declined. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Media Chinese International Limited Been A Good Investment?

The return of -31% over three years would not have pleased Media Chinese International Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

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, 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 an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which is a bit concerning) in Media Chinese International we think you should know about.

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.