It's Unlikely That The CEO Of Nimble Holdings Company Limited (HKG:186) Will See A Huge Pay Rise This Year

Key Insights

• Nimble Holdings to hold its Annual General Meeting on 29th of August
• Salary of HK$2.40m is part of CEO Bingzhao Tan's total remuneration
• The overall pay is comparable to the industry average
• Nimble Holdings' EPS grew by 87% over the past three years while total shareholder loss over the past three years was 47%

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

The underwhelming share price performance of Nimble Holdings Company Limited (HKG:186) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 29th of August. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Nimble Holdings

Comparing Nimble Holdings Company Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Nimble Holdings Company Limited has a market capitalization of HK$1.1b, and reported total annual CEO compensation of HK$2.4m for the year to March 2025. This was the same as last year. In particular, the salary of HK$2.40m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Retail Distributors industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.1m. This suggests that Nimble Holdings remunerates its CEO largely in line with the industry average. Moreover, Bingzhao Tan also holds HK$705m worth of Nimble Holdings 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. Nimble Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Nimble Holdings Company Limited's Growth Numbers

Over the past three years, Nimble Holdings Company Limited has seen its earnings per share (EPS) grow by 87% per year. Its revenue is down 35% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Nimble Holdings Company Limited Been A Good Investment?

With a total shareholder return of -47% over three years, Nimble Holdings 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...

Nimble Holdings pays its CEO a majority of compensation through a salary. Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Nimble Holdings that investors should think about before committing capital to this stock.

Important note: Nimble Holdings 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.

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

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.