Ming Yuan Cloud Group Holdings Limited's (HKG:909) CEO Will Probably Struggle To See A Pay Rise This Year

Key Insights

• Ming Yuan Cloud Group Holdings' Annual General Meeting to take place on 10th of May
• Total pay for CEO Haiyang Jiang includes CN¥566.0k salary
• The total compensation is 77% less than the average for the industry
• Over the past three years, Ming Yuan Cloud Group Holdings' EPS fell by 8.7% and over the past three years, the total loss to shareholders 91%

Performance at Ming Yuan Cloud Group Holdings Limited (HKG:909) has not been particularly rosy recently and shareholders will likely be holding CEO Haiyang Jiang and the board accountable for this. The next AGM coming up on 10th of May will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. The data we gathered below shows that CEO compensation looks acceptable for now.

Check out our latest analysis for Ming Yuan Cloud Group Holdings

Comparing Ming Yuan Cloud Group Holdings Limited's CEO Compensation With The Industry

Our data indicates that Ming Yuan Cloud Group Holdings Limited has a market capitalization of HK$5.3b, and total annual CEO compensation was reported as CN¥679k for the year to December 2023. Notably, that's an increase of 19% over the year before. In particular, the salary of CN¥566.0k, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Hong Kong Software industry with market capitalizations between HK$3.1b and HK$13b, we discovered that the median CEO total compensation of that group was CN¥2.9m. In other words, Ming Yuan Cloud Group Holdings pays its CEO lower than the industry median. Moreover, Haiyang Jiang also holds HK$463m worth of Ming Yuan Cloud Group Holdings 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	CN¥566k	CN¥480k	83%
Other	CN¥113k	CN¥92k	17%
Total Compensation	CN¥679k	CN¥572k	100%

On an industry level, roughly 64% of total compensation represents salary and 36% is other remuneration. Ming Yuan Cloud Group Holdings pays out 83% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Ming Yuan Cloud Group Holdings Limited's Growth

Ming Yuan Cloud Group Holdings Limited has reduced its earnings per share by 8.7% a year over the last three years. In the last year, its revenue is down 9.7%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Ming Yuan Cloud Group Holdings Limited Been A Good Investment?

With a total shareholder return of -91% over three years, Ming Yuan Cloud Group Holdings Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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. We've identified 2 warning signs for Ming Yuan Cloud Group Holdings that investors should be aware of in a dynamic business environment.

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.

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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.