We Think The Compensation For M&L Holdings Group Limited's (HKG:8152) CEO Looks About Right

Key Insights

• M&L Holdings Group to hold its Annual General Meeting on 24th of June
• CEO Lai Ming Ng's total compensation includes salary of HK$920.0k
• Total compensation is 55% below industry average
• M&L Holdings Group's EPS grew by 37% over the past three years while total shareholder loss over the past three years was 29%

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Performance at M&L Holdings Group Limited (HKG:8152) has been rather uninspiring recently and shareholders may be wondering how CEO Lai Ming Ng plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 24th of June. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

See our latest analysis for M&L Holdings Group

Comparing M&L Holdings Group Limited's CEO Compensation With The Industry

Our data indicates that M&L Holdings Group Limited has a market capitalization of HK$34m, and total annual CEO compensation was reported as HK$938k for the year to December 2024. We note that's a small decrease of 5.5% on last year. We note that the salary portion, which stands at HK$920.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Hong Kong Trade Distributors industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.1m. In other words, M&L Holdings Group pays its CEO lower than the industry median. What's more, Lai Ming Ng holds HK$20m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	HK$920k	HK$975k	98%
Other	HK$18k	HK$18k	2%
Total Compensation	HK$938k	HK$993k	100%

On an industry level, roughly 92% of total compensation represents salary and 8% is other remuneration. Investors will find it interesting that M&L Holdings Group pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. 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.

M&L Holdings Group Limited's Growth

M&L Holdings Group Limited's earnings per share (EPS) grew 37% per year over the last three years. Its revenue is down 56% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has M&L Holdings Group Limited Been A Good Investment?

Given the total shareholder loss of 29% over three years, many shareholders in M&L Holdings Group Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Lai Ming receives almost all of their compensation through a salary. The loss to shareholders over the past three years is certainly concerning. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. A key focus for the board and management will be how to align the share price with fundamentals. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for M&L Holdings Group that investors should look into moving forward.

Important note: M&L Holdings Group 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.