Here's Why Shareholders Should Examine International Housewares Retail Company Limited's (HKG:1373) CEO Compensation Package More Closely

Key Insights

• International Housewares Retail to hold its Annual General Meeting on 25th of September
• Total pay for CEO Lai Ha Ngai includes HK$3.57m salary
• Total compensation is 101% above industry average
• International Housewares Retail's three-year loss to shareholders was 63% while its EPS was down 40% over the past three years

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International Housewares Retail Company Limited (HKG:1373) has not performed well recently and CEO Lai Ha Ngai 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 25th of September. 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 International Housewares Retail

How Does Total Compensation For Lai Ha Ngai Compare With Other Companies In The Industry?

Our data indicates that International Housewares Retail Company Limited has a market capitalization of HK$602m, and total annual CEO compensation was reported as HK$3.7m for the year to April 2025. We note that's a small decrease of 3.1% on last year. We note that the salary portion, which stands at HK$3.57m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Hong Kong Specialty Retail industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.8m. Accordingly, our analysis reveals that International Housewares Retail Company Limited pays Lai Ha Ngai north of the industry median. Moreover, Lai Ha Ngai also holds HK$32m worth of International Housewares Retail stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 85% of total compensation represents salary, while the remainder of 15% is other remuneration. International Housewares Retail pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at International Housewares Retail Company Limited's Growth Numbers

Over the last three years, International Housewares Retail Company Limited has shrunk its earnings per share by 40% per year. It saw its revenue drop 5.6% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. 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 International Housewares Retail Company Limited Been A Good Investment?

With a total shareholder return of -63% over three years, International Housewares Retail Company Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

International Housewares Retail pays its CEO a majority of compensation through a salary. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for International Housewares Retail (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Important note: International Housewares Retail is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.