The CEO of Veeko International Holdings Limited (HKG:1173) is Yuk Sum Lam. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Yuk Sum Lam’s Compensation Compare With Similar Sized Companies?
Our data indicates that Veeko International Holdings Limited is worth HK$272m, and total annual CEO compensation is HK$691k. (This is based on the year to March 2018). 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$1.8m.
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. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Veeko International Holdings has changed over time.
Is Veeko International Holdings Limited Growing?
On average over the last three years, Veeko International Holdings Limited has shrunk earnings per share by 62% each year (measured with a line of best fit). Its revenue is down -12% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
Has Veeko International Holdings Limited Been A Good Investment?
Since shareholders would have lost about 46% over three years, some Veeko International Holdings Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
It appears that Veeko International Holdings Limited remunerates its CEO below most similar sized companies.
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). While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Veeko International Holdings.
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