Key Insights

• Media Chinese International's Annual General Meeting to take place on 16th of August
• Salary of US$320.0k is part of CEO Francis Tiong's total remuneration
• Total compensation is 68% above industry average
• Media Chinese International's EPS declined by 112% over the past three years while total shareholder loss over the past three years was 31%

Shareholders will probably not be too impressed with the underwhelming results at Media Chinese International Limited (HKG:685) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 16th of August. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Comparing Media Chinese International Limited's CEO Compensation With The Industry

Our data indicates that Media Chinese International Limited has a market capitalization of HK$331m, and total annual CEO compensation was reported as US$445k for the year to March 2024. This means that the compensation hasn't changed much from last year. In particular, the salary of US$320.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Media industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was US$265k. Hence, we can conclude that Francis Tiong is remunerated higher than the industry median. What's more, Francis Tiong holds HK$1.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 83% of total compensation out of all the companies we analyzed, while other remuneration made up 17% of the pie. Media Chinese International pays a modest slice of remuneration through salary, as compared to the broader industry. 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.

Media Chinese International Limited's Growth

Over the last three years, Media Chinese International Limited has shrunk its earnings per share by 112% per year. In the last year, its revenue is up 11%.

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. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Media Chinese International Limited Been A Good Investment?

Few Media Chinese International Limited shareholders would feel satisfied with the return of -31% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

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. We did our research and identified 2 warning signs (and 1 which is concerning) in Media Chinese International we think you should know about.

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.