David Li became the CEO of VSTECS Holdings Limited (HKG:856) in 2013. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for VSTECS Holdings

How Does David Li’s Compensation Compare With Similar Sized Companies?

Our data indicates that VSTECS Holdings Limited is worth HK$5.5b, and total annual CEO compensation is HK$8m. When we examined a selection of companies with market caps ranging from HK$3.1b to HK$12.5b, we found the median CEO compensation was HK$3m.

Thus we can conclude that David Li receives more in total compensation than the median of a group of companies in the same market, and of similar size to VSTECS Holdings Limited. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

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

Is VSTECS Holdings Limited Growing?

Over the last three years VSTECS Holdings Limited has grown its earnings per share (EPS) by an average of 19% per year. Its revenue is up 17% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

You might want to check this free visual report on analyst forecasts for future earnings.

Has VSTECS Holdings Limited Been A Good Investment?

I think that the total shareholder return of 99%, over three years, would leave most VSTECS Holdings 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…

We examined the amount VSTECS Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling VSTECS Holdings Limited (free visualization of insider trades).

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.