Kun-Hsiang Yang is the CEO of Vedan International (Holdings) Limited (HKG:2317). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
How Does Kun-Hsiang Yang's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Vedan International (Holdings) Limited has a market cap of HK$1.2b, and reported total annual CEO compensation of US$814k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$380k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$212k.
Thus we can conclude that Kun-Hsiang Yang receives more in total compensation than the median of a group of companies in the same market, and of similar size to Vedan International (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.
The graphic below shows how CEO compensation at Vedan International (Holdings) has changed from year to year.
Is Vedan International (Holdings) Limited Growing?
Over the last three years Vedan International (Holdings) Limited has shrunk its earnings per share by an average of 12% per year (measured with a line of best fit). It achieved revenue growth of 9.0% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Vedan International (Holdings) Limited Been A Good Investment?
With a total shareholder return of 9.7% over three years, Vedan International (Holdings) Limited has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We examined the amount Vedan International (Holdings) Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years. While shareholder returns are acceptable, they don't delight. So we think more research is needed, but we don't think the CEO underpaid. Whatever your view on compensation, you might want to check if insiders are buying or selling Vedan International (Holdings) shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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