Should You Worry About Vinda International Holdings Limited's (HKG:3331) CEO Pay Cheque?

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In 2015 Johann Michalski was appointed CEO of Vinda International Holdings Limited (HKG:3331). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Vinda International Holdings

How Does Johann Michalski's Compensation Compare With Similar Sized Companies?

Our data indicates that Vinda International Holdings Limited is worth HK$16b, and total annual CEO compensation is HK$9.4m. (This figure is for the year to December 2018). That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$5.2m. When we examined a selection of companies with market caps ranging from HK$7.8b to HK$25b, we found the median CEO total compensation was HK$3.6m.

Thus we can conclude that Johann Michalski receives more in total compensation than the median of a group of companies in the same market, and of similar size to Vinda International Holdings Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Vinda International Holdings has changed over time.

SEHK:3331 CEO Compensation, May 14th 2019
SEHK:3331 CEO Compensation, May 14th 2019

Is Vinda International Holdings Limited Growing?

Vinda International Holdings Limited has increased its earnings per share (EPS) by an average of 18% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 10%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Vinda International Holdings Limited Been A Good Investment?

Given the total loss of 3.4% over three years, many shareholders in Vinda International Holdings Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid 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. Our data suggests that it pays above the median CEO pay within that group.

However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Vinda International Holdings.

If you want to buy a stock that is better than Vinda International Holdings, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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