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Sem Gan became the CEO of V.S. International Group Limited (HKG:1002) in 2001. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Sem Gan’s Compensation Compare With Similar Sized Companies?
According to our data, V.S. International Group Limited has a market capitalization of HK$208m, and pays its CEO total annual compensation worth CN¥2.1m. (This figure is for the year to July 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CN¥1.7m. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.3m.
Thus we can conclude that Sem Gan receives more in total compensation than the median of a group of companies in the same market, and of similar size to V.S. International Group Limited. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at V.S. International Group has changed over time.
Is V.S. International Group Limited Growing?
Over the last three years V.S. International Group Limited has grown its earnings per share (EPS) by an average of 5.7% per year (using a line of best fit). Its revenue is down -35% over last year.
I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. 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 V.S. International Group Limited Been A Good Investment?
Since shareholders would have lost about 82% over three years, some V.S. International Group Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount V.S. International Group Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Shareholders may wish to consider further research. Although we don’t think the CEO pay is too high, it is probably more on the generous side of things. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at V.S. International Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.