Key Insights

• Nameson Holdings will host its Annual General Meeting on 30th of August
• Salary of HK$1.44m is part of CEO Yu Hin Man's total remuneration
• The overall pay is comparable to the industry average
• Nameson Holdings' total shareholder return over the past three years was 94% while its EPS grew by 4.9% over the past three years

CEO Yu Hin Man has done a decent job of delivering relatively good performance at Nameson Holdings Limited (HKG:1982) recently. As shareholders go into the upcoming AGM on 30th of August, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

How Does Total Compensation For Yu Hin Man Compare With Other Companies In The Industry?

According to our data, Nameson Holdings Limited has a market capitalization of HK$1.5b, and paid its CEO total annual compensation worth HK$4.8m over the year to March 2024. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$1.4m.

For comparison, other companies in the Hong Kong Luxury industry with market capitalizations ranging between HK$780m and HK$3.1b had a median total CEO compensation of HK$4.3m. This suggests that Nameson Holdings remunerates its CEO largely in line with the industry average.

On an industry level, around 91% of total compensation represents salary and 9% is other remuneration. It's interesting to note that Nameson Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Nameson Holdings Limited's Growth Numbers

Nameson Holdings Limited's earnings per share (EPS) grew 4.9% per year over the last three years. It saw its revenue drop 4.9% over the last year.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Nameson Holdings Limited Been A Good Investment?

We think that the total shareholder return of 94%, over three years, would leave most Nameson Holdings Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

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 did our research and spotted 1 warning sign for Nameson Holdings that investors should look into moving forward.

Important note: Nameson 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.