This Is Why Ming Yuan Cloud Group Holdings Limited's (HKG:909) CEO Compensation Looks Appropriate

Key Insights

• Ming Yuan Cloud Group Holdings will host its Annual General Meeting on 20th of May
• CEO Haiyang Jiang's total compensation includes salary of CN¥715.0k
• The overall pay is 73% below the industry average
• Over the past three years, Ming Yuan Cloud Group Holdings' EPS grew by 29% and over the past three years, the total loss to shareholders 68%

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Shareholders may be wondering what CEO Haiyang Jiang plans to do to improve the less than great performance at Ming Yuan Cloud Group Holdings Limited (HKG:909) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 20th of May. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out our latest analysis for Ming Yuan Cloud Group Holdings

How Does Total Compensation For Haiyang Jiang Compare With Other Companies In The Industry?

Our data indicates that Ming Yuan Cloud Group Holdings Limited has a market capitalization of HK$5.2b, and total annual CEO compensation was reported as CN¥831k for the year to December 2024. Notably, that's an increase of 22% over the year before. We note that the salary portion, which stands at CN¥715.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Hong Kong Software industry with market caps ranging from HK$3.1b to HK$12b, we found that the median CEO total compensation was CN¥3.1m. This suggests that Haiyang Jiang is paid below the industry median. Furthermore, Haiyang Jiang directly owns HK$464m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	CN¥715k	CN¥566k	86%
Other	CN¥116k	CN¥113k	14%
Total Compensation	CN¥831k	CN¥679k	100%

On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. Ming Yuan Cloud Group Holdings pays out 86% 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.

A Look at Ming Yuan Cloud Group Holdings Limited's Growth Numbers

Ming Yuan Cloud Group Holdings Limited's earnings per share (EPS) grew 29% per year over the last three years. It saw its revenue drop 12% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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?

Few Ming Yuan Cloud Group Holdings Limited shareholders would feel satisfied with the return of -68% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key question may be why the fundamentals have not yet been reflected into the share price. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Ming Yuan Cloud Group Holdings that investors should be aware of in a dynamic business environment.

Important note: Ming Yuan Cloud Group 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.