Key Insights

• Kingdom Holdings will host its Annual General Meeting on 14th of June
• Salary of CN¥2.00m is part of CEO Weiming Ren's total remuneration
• The total compensation is similar to the average for the industry
• Kingdom Holdings' EPS grew by 63% over the past three years while total shareholder return over the past three years was 5.1%

CEO Weiming Ren has done a decent job of delivering relatively good performance at Kingdom Holdings Limited (HKG:528) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 14th of June. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

How Does Total Compensation For Weiming Ren Compare With Other Companies In The Industry?

Our data indicates that Kingdom Holdings Limited has a market capitalization of HK$734m, and total annual CEO compensation was reported as CN¥2.0m for the year to December 2023. This was the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth CN¥2.0m.

In comparison with other companies in the Hong Kong Luxury industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.9m. This suggests that Kingdom Holdings remunerates its CEO largely in line with the industry average. What's more, Weiming Ren holds HK$14m 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, around 94% of total compensation represents salary and 6% is other remuneration. At the company level, Kingdom Holdings pays Weiming Ren solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Kingdom Holdings Limited's Growth Numbers

Kingdom Holdings Limited's earnings per share (EPS) grew 63% per year over the last three years. It achieved revenue growth of 21% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Kingdom Holdings Limited Been A Good Investment?

Kingdom Holdings Limited has generated a total shareholder return of 5.1% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

Kingdom Holdings rewards its CEO solely through a salary, ignoring non-salary benefits completely. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Kingdom Holdings that investors should be aware of in a dynamic business environment.

Important note: Kingdom 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.