It's Unlikely That Shareholders Will Increase MOBI Development Co., Ltd.'s (HKG:947) Compensation By Much This Year

Key Insights

• MOBI Development will host its Annual General Meeting on 29th of May
• CEO Xiang Hu's total compensation includes salary of CN¥768.0k
• The overall pay is 45% below the industry average
• MOBI Development's three-year loss to shareholders was 73% while its EPS was down 5.6% over the past three years

The underwhelming performance at MOBI Development Co., Ltd. (HKG:947) recently has probably not pleased shareholders. At the upcoming AGM on 29th of May, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

Check out our latest analysis for MOBI Development

How Does Total Compensation For Xiang Hu Compare With Other Companies In The Industry?

According to our data, MOBI Development Co., Ltd. has a market capitalization of HK$121m, and paid its CEO total annual compensation worth CN¥858k over the year to December 2023. Notably, that's an increase of 9.4% over the year before. Notably, the salary which is CN¥768.0k, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Communications industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.6m. In other words, MOBI Development pays its CEO lower than the industry median. What's more, Xiang Hu holds HK$3.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 77% of total compensation represents salary and 23% is other remuneration. MOBI Development is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at MOBI Development Co., Ltd.'s Growth Numbers

MOBI Development Co., Ltd. has reduced its earnings per share by 5.6% a year over the last three years. It saw its revenue drop 6.7% over the last year.

Few shareholders would be pleased to read that EPS have declined. 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has MOBI Development Co., Ltd. Been A Good Investment?

The return of -73% over three years would not have pleased MOBI Development Co., Ltd. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for MOBI Development you should be aware of, and 1 of them is a bit concerning.

Switching gears from MOBI Development, 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.