In This Article:
Timmy Tin has been the CEO of Value Convergence Holdings Limited (HKG:821) since 2013. 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. 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.
View our latest analysis for Value Convergence Holdings
How Does Timmy Tin’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Value Convergence Holdings Limited has a market cap of HK$677m, and is paying total annual CEO compensation of HK$2.9m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at HK$1.6m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO compensation in that group is HK$1.7m.
As you can see, Timmy Tin is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Value Convergence 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 Value Convergence Holdings has changed from year to year.
Is Value Convergence Holdings Limited Growing?
Over the last three years Value Convergence Holdings Limited has shrunk its earnings per share by an average of 80% per year. In the last year, its revenue is down -216%.
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.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Value Convergence Holdings Limited Been A Good Investment?
Since shareholders would have lost about 52% over three years, some Value Convergence 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 total CEO remuneration at Value Convergence Holdings Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.