In This Article:
Johann Michalski became the CEO of Vinda International Holdings Limited (HKG:3331) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Vinda International Holdings
How Does Johann Michalski’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Vinda International Holdings Limited has a market cap of HK$14b, and is paying total annual CEO compensation of HK$5.1m. Notably, that’s an increase of 326% over the year before. When we examined a selection of companies with market caps ranging from HK$7.8b to HK$25b, we found the median CEO compensation was HK$3.6m.
As you can see, Johann Michalski is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Vinda International Holdings Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Vinda International Holdings has changed from year to year.
Is Vinda International Holdings Limited Growing?
Vinda International Holdings Limited has increased its earnings per share (EPS) by an average of 8.2% a year, over the last three years Its revenue is up 14% over last year.
I would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn’t bad, either. Although we’ll stop short of calling the stock a top performer, we think the company has potential.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Vinda International Holdings Limited Been A Good Investment?
Since shareholders would have lost about 21% over three years, some Vinda International Holdings Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We compared the total CEO remuneration paid by Vinda International Holdings Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. This contrasts with the growth in CEO remuneration, in the last year. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side.