Key Insights

• NVC International Holdings to hold its Annual General Meeting on 14th of June
• Total pay for CEO Eva Chan includes US$1.11m salary
• Total compensation is 971% above industry average
• NVC International Holdings' three-year loss to shareholders was 51% while its EPS grew by 73% over the past three years

The underwhelming share price performance of NVC International Holdings Limited (HKG:2222) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 14th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Comparing NVC International Holdings Limited's CEO Compensation With The Industry

Our data indicates that NVC International Holdings Limited has a market capitalization of HK$497m, and total annual CEO compensation was reported as US$1.2m for the year to December 2023. That's a fairly small increase of 5.4% over the previous year. In particular, the salary of US$1.11m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Hong Kong Household Products industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was US$108k. This suggests that Eva Chan is paid more than the median for the industry.

Speaking on an industry level, nearly 94% of total compensation represents salary, while the remainder of 6% is other remuneration. Investors will find it interesting that NVC International Holdings pays the bulk of its rewards through a traditional salary, instead of 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.

NVC International Holdings Limited's Growth

NVC International Holdings Limited's earnings per share (EPS) grew 73% per year over the last three years. Its revenue is down 16% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has NVC International Holdings Limited Been A Good Investment?

Few NVC International Holdings Limited shareholders would feel satisfied with the return of -51% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Eva receives almost all of their compensation through a salary. Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for NVC International Holdings that investors should think about before committing capital to this stock.

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.