Key Insights
- Hin Sang Group (International) Holding's Annual General Meeting to take place on 26th of September
- Salary of HK$2.70m is part of CEO Siu Hin Pang's total remuneration
- The total compensation is similar to the average for the industry
- Hin Sang Group (International) Holding's three-year loss to shareholders was 16% while its EPS was down 12% over the past three years
The results at Hin Sang Group (International) Holding Co. Ltd. (HKG:6893) have been quite disappointing recently and CEO Siu Hin Pang bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 26th of September. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.
See our latest analysis for Hin Sang Group (International) Holding
Comparing Hin Sang Group (International) Holding Co. Ltd.'s CEO Compensation With The Industry
At the time of writing, our data shows that Hin Sang Group (International) Holding Co. Ltd. has a market capitalization of HK$317m, and reported total annual CEO compensation of HK$2.7m for the year to March 2024. That's a fairly small increase of 5.7% over the previous year. We note that the salary portion, which stands at HK$2.70m constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the Hong Kong Personal Products industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.2m. From this we gather that Siu Hin Pang is paid around the median for CEOs in the industry.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | HK$2.7m | HK$2.6m | 99% |
| Other | HK$18k | HK$18k | 1% |
| Total Compensation | HK$2.7m | HK$2.6m | 100% |
On an industry level, roughly 75% of total compensation represents salary and 25% is other remuneration. Hin Sang Group (International) Holding is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Hin Sang Group (International) Holding Co. Ltd.'s Growth
Over the last three years, Hin Sang Group (International) Holding Co. Ltd. has shrunk its earnings per share by 12% per year. Its revenue is up 14% over the last year.
Overall this is not a very positive result for shareholders. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that EPS has gone backwards over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Hin Sang Group (International) Holding Co. Ltd. Been A Good Investment?
With a three year total loss of 16% for the shareholders, Hin Sang Group (International) Holding Co. Ltd. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Siu Hin receives almost all of their compensation through a salary. 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.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for Hin Sang Group (International) Holding you should be aware of, and 1 of them is potentially serious.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.