Should You Worry About Vitasoy International Holdings Limited's (HKG:345) CEO Pay?

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Roberto Guidetti has been the CEO of Vitasoy International Holdings Limited (HKG:345) since 2013. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Vitasoy International Holdings

How Does Roberto Guidetti's Compensation Compare With Similar Sized Companies?

According to our data, Vitasoy International Holdings Limited has a market capitalization of HK$32b, and paid its CEO total annual compensation worth HK$17m over the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at HK$7.1m. We examined companies with market caps from HK$16b to HK$50b, and discovered that the median CEO total compensation of that group was HK$4.4m.

It would therefore appear that Vitasoy International Holdings Limited pays Roberto Guidetti more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Vitasoy International Holdings, below.

SEHK:345 CEO Compensation, January 24th 2020
SEHK:345 CEO Compensation, January 24th 2020

Is Vitasoy International Holdings Limited Growing?

Vitasoy International Holdings Limited has increased its earnings per share (EPS) by an average of 4.5% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 6.8%.

I'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.

Has Vitasoy International Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Vitasoy International Holdings Limited for providing a total return of 97% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We compared total CEO remuneration at Vitasoy International Holdings Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Vitasoy International Holdings.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.

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