Here's Why Shareholders Should Examine Times Neighborhood Holdings Limited's (HKG:9928) CEO Compensation Package More Closely

Key Insights

• Times Neighborhood Holdings to hold its Annual General Meeting on 30th of May
• Salary of CN¥2.25m is part of CEO Meng Wang's total remuneration
• Total compensation is 176% above industry average
• Times Neighborhood Holdings' EPS declined by 100% over the past three years while total shareholder loss over the past three years was 89%

Shareholders will probably not be too impressed with the underwhelming results at Times Neighborhood Holdings Limited (HKG:9928) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 30th of May. 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. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Times Neighborhood Holdings

Comparing Times Neighborhood Holdings Limited's CEO Compensation With The Industry

Our data indicates that Times Neighborhood Holdings Limited has a market capitalization of HK$648m, and total annual CEO compensation was reported as CN¥4.7m for the year to December 2023. We note that's a small decrease of 7.3% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥2.3m.

In comparison with other companies in the Hong Kong Real Estate industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.7m. Hence, we can conclude that Meng Wang is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	CN¥2.3m	CN¥2.5m	48%
Other	CN¥2.4m	CN¥2.6m	52%
Total Compensation	CN¥4.7m	CN¥5.0m	100%

On an industry level, roughly 77% of total compensation represents salary and 23% is other remuneration. It's interesting to note that Times Neighborhood Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Times Neighborhood Holdings Limited's Growth

Over the last three years, Times Neighborhood Holdings Limited has shrunk its earnings per share by 100% per year. Its revenue is down 5.2% over the previous year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Times Neighborhood Holdings Limited Been A Good Investment?

Few Times Neighborhood Holdings Limited shareholders would feel satisfied with the return of -89% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Times Neighborhood Holdings you should be aware of, and 1 of them makes us a bit uncomfortable.

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.