Shareholders Will Probably Hold Off On Increasing Mi Ming Mart Holdings Limited's (HKG:8473) CEO Compensation For The Time Being

Key Insights

• Mi Ming Mart Holdings' Annual General Meeting to take place on 8th of August
• Salary of HK$3.11m is part of CEO Erica Yuen's total remuneration
• The total compensation is 130% higher than the average for the industry
• Mi Ming Mart Holdings' total shareholder return over the past three years was 42% while its EPS was down 37% over the past three years

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The share price of Mi Ming Mart Holdings Limited (HKG:8473) has increased significantly over the past few years. However, the earnings growth has not kept up with the share price momentum, suggesting that some other factors may be driving the price direction. The upcoming AGM on 8th of August may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

See our latest analysis for Mi Ming Mart Holdings

Comparing Mi Ming Mart Holdings Limited's CEO Compensation With The Industry

Our data indicates that Mi Ming Mart Holdings Limited has a market capitalization of HK$160m, and total annual CEO compensation was reported as HK$4.2m for the year to March 2025. Notably, that's a decrease of 15% over the year before. We note that the salary portion, which stands at HK$3.11m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Specialty Retail industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.8m. Hence, we can conclude that Erica Yuen is remunerated higher than the industry median. Moreover, Erica Yuen also holds HK$112m worth of Mi Ming Mart Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 85% of total compensation out of all the companies we analyzed, while other remuneration made up 15% of the pie. Mi Ming Mart Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Mi Ming Mart Holdings Limited's Growth

Over the last three years, Mi Ming Mart Holdings Limited has shrunk its earnings per share by 37% per year. It saw its revenue drop 20% over the last year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Mi Ming Mart Holdings Limited Been A Good Investment?

We think that the total shareholder return of 42%, over three years, would leave most Mi Ming Mart Holdings Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

While the return to shareholders does look promising, it's hard to ignore the lack of earnings growth and this makes us question whether these strong returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns 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 an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 4 warning signs for Mi Ming Mart Holdings (1 is concerning!) that you should be aware of before investing here.

Important note: Mi Ming Mart 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.

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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.