Key Insights

• Meta Media Holdings to hold its Annual General Meeting on 28th of June
• Salary of CN¥3.37m is part of CEO Zhong Shao's total remuneration
• Total compensation is 87% above industry average
• Meta Media Holdings' EPS declined by 11% over the past three years while total shareholder return over the past three years was 25%

Despite Meta Media Holdings Limited's (HKG:72) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 28th of June. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

Comparing Meta Media Holdings Limited's CEO Compensation With The Industry

Our data indicates that Meta Media Holdings Limited has a market capitalization of HK$104m, and total annual CEO compensation was reported as CN¥3.4m for the year to December 2023. That's a slight decrease of 3.5% on the prior year. Notably, the salary of CN¥3.4m is the entirety of the CEO compensation.

For comparison, other companies in the Hong Kong Media industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.8m. Accordingly, our analysis reveals that Meta Media Holdings Limited pays Zhong Shao north of the industry median. Furthermore, Zhong Shao directly owns HK$78m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 86% of total compensation represents salary, while the remainder of 14% is other remuneration. At the company level, Meta Media Holdings pays Zhong Shao solely through a salary, preferring to go down a conventional route. 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.

A Look at Meta Media Holdings Limited's Growth Numbers

Meta Media Holdings Limited has reduced its earnings per share by 11% a year over the last three years. In the last year, its revenue is up 2.8%.

The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Meta Media Holdings Limited Been A Good Investment?

With a total shareholder return of 25% over three years, Meta Media Holdings Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Meta Media Holdings rewards its CEO solely through a salary, ignoring non-salary benefits completely. Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. The upcoming AGM will provide shareholders the opportunity to revisit the company's remuneration policies and evaluate if the board's judgement and decision-making is aligned with that of the company's shareholders.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which is potentially serious) in Meta Media Holdings 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com