Pop Mart International Group Limited's (HKG:9992) CEO Looks Due For A Compensation Raise

Key Insights

• Pop Mart International Group to hold its Annual General Meeting on 27th of May
• Salary of CN¥2.82m is part of CEO Ning Wang's total remuneration
• The total compensation is 52% less than the average for the industry
• Pop Mart International Group's EPS grew by 56% over the past three years while total shareholder return over the past three years was 584%

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The impressive results at Pop Mart International Group Limited (HKG:9992) recently will be great news for shareholders. At the upcoming AGM on 27th of May, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

View our latest analysis for Pop Mart International Group

Comparing Pop Mart International Group Limited's CEO Compensation With The Industry

According to our data, Pop Mart International Group Limited has a market capitalization of HK$277b, and paid its CEO total annual compensation worth CN¥3.3m over the year to December 2024. We note that's an increase of 59% above last year. Notably, the salary which is CN¥2.82m, represents most of the total compensation being paid.

On comparing similar companies in the Hong Kong Specialty Retail industry with market capitalizations above HK$63b, we found that the median total CEO compensation was CN¥6.9m. Accordingly, Pop Mart International Group pays its CEO under the industry median. Furthermore, Ning Wang directly owns HK$123b worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 85% of total compensation represents salary, while the remainder of 15% is other remuneration. Although there is a difference in how total compensation is set, Pop Mart International Group more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Pop Mart International Group Limited's Growth

Over the past three years, Pop Mart International Group Limited has seen its earnings per share (EPS) grow by 56% per year. It achieved revenue growth of 107% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Pop Mart International Group Limited Been A Good Investment?

We think that the total shareholder return of 584%, over three years, would leave most Pop Mart International Group 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 solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

Whatever your view on compensation, you might want to check if insiders are buying or selling Pop Mart International Group shares (free trial).

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.