We Think Shareholders Are Less Likely To Approve A Large Pay Rise For International Housewares Retail Company Limited's (HKG:1373) CEO For Now

Key Insights

• International Housewares Retail's Annual General Meeting to take place on 26th of September
• Salary of HK$3.64m is part of CEO Lai Ha Ngai's total remuneration
• Total compensation is 68% above industry average
• Over the past three years, International Housewares Retail's EPS grew by 6.1% and over the past three years, the total shareholder return was 26%

Under the guidance of CEO Lai Ha Ngai, International Housewares Retail Company Limited (HKG:1373) has performed reasonably well recently. As shareholders go into the upcoming AGM on 26th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for International Housewares Retail

Comparing International Housewares Retail Company Limited's CEO Compensation With The Industry

According to our data, International Housewares Retail Company Limited has a market capitalization of HK$1.6b, and paid its CEO total annual compensation worth HK$3.9m over the year to April 2023. We note that's a decrease of 9.4% compared to last year. Notably, the salary which is HK$3.64m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Specialty Retail industry with market capitalizations ranging from HK$782m to HK$3.1b, the reported median CEO total compensation was HK$2.3m. This suggests that Lai Ha Ngai is paid more than the median for the industry. Moreover, Lai Ha Ngai also holds HK$87m 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.

Component	2023	2022	Proportion (2023)
Salary	HK$3.6m	HK$3.4m	93%
Other	HK$295k	HK$939k	7%
Total Compensation	HK$3.9m	HK$4.3m	100%

Speaking on an industry level, nearly 87% of total compensation represents salary, while the remainder of 13% is other remuneration. There isn't a significant difference between International Housewares Retail and the broader market, in terms of salary allocation in the overall compensation package. 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 International Housewares Retail Company Limited's Growth Numbers

Over the past three years, International Housewares Retail Company Limited has seen its earnings per share (EPS) grow by 6.1% per year. Its revenue is down 3.2% over the previous year.

We would prefer it if there was revenue growth, but the modest EPS growth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is 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 International Housewares Retail Company Limited Been A Good Investment?

International Housewares Retail Company Limited has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for International Housewares Retail that you should be aware of before investing.

Switching gears from International Housewares Retail, 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.