Kelly Lau became the CEO of hmvod Limited (HKG:8103) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Kelly Lau's Compensation Compare With Similar Sized Companies?
According to our data, hmvod Limited has a market capitalization of HK$21m, and paid its CEO total annual compensation worth HK$438k over the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$420k. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.8m.
Most shareholders would consider it a positive that Kelly Lau takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at hmvod has changed over time.
Is hmvod Limited Growing?
On average over the last three years, hmvod Limited has shrunk earnings per share by 7.7% each year (measured with a line of best fit). It saw its revenue drop 17% over the last year.
Unfortunately, earnings per share have trended lower over the last 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 shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has hmvod Limited Been A Good Investment?
With a three year total loss of 94%, hmvod Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
hmvod Limited is currently paying its CEO below what is normal for companies of its size.
The compensation paid to Kelly Lau is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling hmvod (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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