We Think Shareholders May Want To Consider A Review Of MS Concept Limited's (HKG:8447) CEO Compensation Package

Key Insights

• MS Concept's Annual General Meeting to take place on 1st of August
• CEO John Kwong's total compensation includes salary of HK$3.30m
• Total compensation is similar to the industry average
• Over the past three years, MS Concept's EPS fell by 82% and over the past three years, the total loss to shareholders 58%

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Shareholders will probably not be too impressed with the underwhelming results at MS Concept Limited (HKG:8447) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 1st of August. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for MS Concept

Comparing MS Concept Limited's CEO Compensation With The Industry

At the time of writing, our data shows that MS Concept Limited has a market capitalization of HK$35m, and reported total annual CEO compensation of HK$3.3m for the year to March 2025. That's a notable decrease of 8.3% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth HK$3.3m.

In comparison with other companies in the Hong Kong Hospitality industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.6m. From this we gather that John Kwong is paid around the median for CEOs in the industry.

Talking in terms of the industry, salary represented approximately 83% of total compensation out of all the companies we analyzed, while other remuneration made up 17% of the pie. On a company level, MS Concept prefers to reward its CEO through a salary, opting not to pay John Kwong through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at MS Concept Limited's Growth Numbers

Over the last three years, MS Concept Limited has shrunk its earnings per share by 82% per year. It achieved revenue growth of 12% over the last year.

The decline in EPS is a bit concerning. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that EPS has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet 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 MS Concept Limited Been A Good Investment?

The return of -58% over three years would not have pleased MS Concept Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

MS Concept pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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 2 warning signs for MS Concept that investors should look into moving forward.

Switching gears from MS Concept, 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.