We Think Some Shareholders May Hesitate To Increase MBV International Limited's (HKG:1957) CEO Compensation

Key Insights

• MBV International will host its Annual General Meeting on 16th of May
• CEO Mein Tan's total compensation includes salary of RM751.0k
• Total compensation is 48% above industry average
• MBV International's EPS grew by 34% over the past three years while total shareholder loss over the past three years was 52%

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Shareholders of MBV International Limited (HKG:1957) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 16th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for MBV International

Comparing MBV International Limited's CEO Compensation With The Industry

Our data indicates that MBV International Limited has a market capitalization of HK$131m, and total annual CEO compensation was reported as RM1.8m for the year to December 2024. Notably, that's an increase of 19% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at RM751k.

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 RM1.2m. This suggests that Mein Tan is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	RM751k	RM720k	43%
Other	RM1.0m	RM760k	57%
Total Compensation	RM1.8m	RM1.5m	100%

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. MBV International pays a modest slice of remuneration through salary, as compared 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.

MBV International Limited's Growth

MBV International Limited's earnings per share (EPS) grew 34% per year over the last three years. It saw its revenue drop 4.8% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 MBV International Limited Been A Good Investment?

Few MBV International Limited shareholders would feel satisfied with the return of -52% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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 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 MBV International that you should be aware of before investing.

Switching gears from MBV International, 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.