Yuk Sum Lam is the CEO of Veeko International Holdings Limited (HKG:1173). 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Yuk Sum Lam's Compensation Compare With Similar Sized Companies?
According to our data, Veeko International Holdings Limited has a market capitalization of HK$204m, and paid its CEO total annual compensation worth HK$691k over the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$660k. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.7m.
Most shareholders would consider it a positive that Yuk Sum Lam takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Veeko International Holdings, below.
Is Veeko International Holdings Limited Growing?
Over the last three years Veeko International Holdings Limited has shrunk its earnings per share by an average of 62% per year (measured with a line of best fit). Its revenue is down 12% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Veeko International Holdings Limited Been A Good Investment?
Since shareholders would have lost about 64% over three years, some Veeko International Holdings Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Veeko International Holdings Limited is currently paying its CEO below what is normal for companies of its size.
The compensation paid to Yuk Sum Lam 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 Veeko International Holdings (free visualization of insider trades).
If you want to buy a stock that is better than Veeko International Holdings, this free list of high return, low debt companies is a great place to look.
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