In This Article:
The CEO of Vincent Medical Holdings Limited (HKG:1612) is Ki To. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.
Check out our latest analysis for Vincent Medical Holdings
How Does Ki To's Compensation Compare With Similar Sized Companies?
Our data indicates that Vincent Medical Holdings Limited is worth HK$389m, and total annual CEO compensation was reported as HK$1.5m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at HK$1.3m. 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.
So Ki To receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Vincent Medical Holdings, below.
Is Vincent Medical Holdings Limited Growing?
On average over the last three years, Vincent Medical Holdings Limited has shrunk earnings per share by 29% each year (measured with a line of best fit). It achieved revenue growth of 8.4% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced 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 you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Vincent Medical Holdings Limited Been A Good Investment?
Since shareholders would have lost about 34% over three years, some Vincent Medical Holdings Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Ki To is paid around what is normal the leaders of comparable size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Whatever your view on compensation, you might want to check if insiders are buying or selling Vincent Medical Holdings shares (free trial).