Increases to Meta Media Holdings Limited's (HKG:72) CEO Compensation Might Cool off for now

Key Insights

• Meta Media Holdings' Annual General Meeting to take place on 28th of June
• Total pay for CEO Zhong Shao includes CN¥3.37m salary
• The overall pay is 87% above the industry average
• Over the past three years, Meta Media Holdings' EPS fell by 11% and over the past three years, the total shareholder return was 25%

Despite Meta Media Holdings Limited's (HKG:72) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 28th of June. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

See our latest analysis for Meta Media Holdings

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

Our data indicates that Meta Media Holdings Limited has a market capitalization of HK$104m, and total annual CEO compensation was reported as CN¥3.4m for the year to December 2023. That's slightly lower by 3.5% over the previous year. It is worth noting that the CEO compensation consists entirely of the salary, worth CN¥3.4m.

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 CN¥1.8m. Hence, we can conclude that Zhong Shao is remunerated higher than the industry median. What's more, Zhong Shao holds HK$78m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CN¥3.4m	CN¥3.5m	100%
Other	-	-	-
Total Compensation	CN¥3.4m	CN¥3.5m	100%

On an industry level, roughly 86% of total compensation represents salary and 14% is other remuneration. At the company level, Meta Media Holdings pays Zhong Shao solely through a salary, preferring to go down a conventional route. 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 Meta Media Holdings Limited's Growth Numbers

Meta Media Holdings Limited has reduced its earnings per share by 11% a year over the last three years. Its revenue is up 2.8% over the last year.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Meta Media Holdings Limited Been A Good Investment?

With a total shareholder return of 25% over three years, Meta Media Holdings Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Meta Media Holdings rewards its CEO solely through a salary, ignoring non-salary benefits completely. Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which is significant) in Meta Media Holdings 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com