Stock Analysis

Shareholders Will Most Likely Find MBV International Limited's (HKG:1957) CEO Compensation Acceptable

SEHK:1957
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Key Insights

Performance at MBV International Limited (HKG:1957) has been reasonably good and CEO Mein Tan has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 17th of May. We present our case of why we think CEO compensation looks fair.

Check out our latest analysis for MBV International

Comparing MBV International Limited's CEO Compensation With The Industry

According to our data, MBV International Limited has a market capitalization of HK$402m, and paid its CEO total annual compensation worth RM957k over the year to December 2023. We note that's an increase of 24% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at RM466k.

On comparing similar-sized companies in the Hong Kong Retail Distributors industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was RM957k. This suggests that MBV International remunerates its CEO largely in line with the industry average.

Component20232022Proportion (2023)
Salary RM466k RM458k 49%
Other RM491k RM313k 51%
Total CompensationRM957k RM771k100%

Speaking on an industry level, nearly 94% of total compensation represents salary, while the remainder of 6% is other remuneration. It's interesting to note that MBV International allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
SEHK:1957 CEO Compensation May 10th 2024

A Look at MBV International Limited's Growth Numbers

MBV International Limited has seen its earnings per share (EPS) increase by 260% a year over the past three years. Its revenue is up 6.1% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has MBV International Limited Been A Good Investment?

MBV International Limited has served shareholders reasonably well, with a total return of 31% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for MBV International that investors should think about before committing capital to this stock.

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.

Valuation is complex, but we're helping make it simple.

Find out whether MBV International is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.