Kin Kuan became the CEO of Vodatel Networks Holdings Limited (HKG:8033) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Vodatel Networks Holdings

How Does Kin Kuan’s Compensation Compare With Similar Sized Companies?

According to our data, Vodatel Networks Holdings Limited has a market capitalization of HK$135m, and pays its CEO total annual compensation worth HK$2m. We note that’s an increase of 60% above last year. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO compensation was HK$2m.

That means Kin Kuan receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Vodatel Networks Holdings, below.

Is Vodatel Networks Holdings Limited Growing?

On average over the last three years, Vodatel Networks Holdings Limited has shrunk earnings per share by 32% each year. It saw its revenue drop -1.1% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.

Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Vodatel Networks Holdings Limited Been A Good Investment?

Given the total loss of 25% over three years, many shareholders in Vodatel Networks Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

Kin Kuan is paid around the same as most CEOs of similar size companies.

Returns have been disappointing and the company is not growing its earnings per share. So shareholders might not feel great about the fact that CEO pay increased on last year. Few would argue that it’s wise for the company to pay any more, before returns improve. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Vodatel Networks Holdings Limited.