Key Insights

• Roma (meta) Group to hold its Annual General Meeting on 26th of September
• Salary of HK$1.59m is part of CEO Ken Yue's total remuneration
• The overall pay is comparable to the industry average
• Roma (meta) Group's EPS grew by 70% over the past three years while total shareholder loss over the past three years was 94%

Shareholders of Roma (meta) Group Limited (HKG:8072) will have been dismayed by the negative share price return over the last three years. 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 26th of September. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Comparing Roma (meta) Group Limited's CEO Compensation With The Industry

Our data indicates that Roma (meta) Group Limited has a market capitalization of HK$10m, and total annual CEO compensation was reported as HK$1.6m for the year to March 2024. Notably, that's a decrease of 27% over the year before. In particular, the salary of HK$1.59m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Professional Services industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.6m. This suggests that Roma (meta) Group remunerates its CEO largely in line with the industry average.

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Roma (meta) Group pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Roma (meta) Group Limited's Growth

Over the past three years, Roma (meta) Group Limited has seen its earnings per share (EPS) grow by 70% per year. In the last year, its revenue is down 6.4%.

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. 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 Roma (meta) Group Limited Been A Good Investment?

Few Roma (meta) Group Limited shareholders would feel satisfied with the return of -94% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Ken 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 stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Roma (meta) Group that you should be aware of before investing.

Switching gears from Roma (meta) Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.