Vision International Holdings Limited's (HKG:8107) CEO Will Probably Struggle To See A Pay Rise This Year

The disappointing performance at Vision International Holdings Limited (HKG:8107) will make some shareholders rather disheartened. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 21 May 2021. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

View our latest analysis for Vision International Holdings

How Does Total Compensation For Morris Ko Compare With Other Companies In The Industry?

According to our data, Vision International Holdings Limited has a market capitalization of HK$34m, and paid its CEO total annual compensation worth HK$824k over the year to December 2020. That's a notable decrease of 8.6% on last year. We note that the salary portion, which stands at HK$806.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.3m. Accordingly, Vision International Holdings pays its CEO under the industry median.

Component	2020	2019	Proportion (2020)
Salary	HK$806k	HK$884k	98%
Other	HK$18k	HK$18k	2%
Total Compensation	HK$824k	HK$902k	100%

On an industry level, around 93% of total compensation represents salary and 7% is other remuneration. Investors will find it interesting that Vision International Holdings pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Vision International Holdings Limited's Growth Numbers

Over the last three years, Vision International Holdings Limited has shrunk its earnings per share by 56% per year. It achieved revenue growth of 9.5% over the last year.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Vision International Holdings Limited Been A Good Investment?

With a total shareholder return of -68% over three years, Vision International Holdings Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Vision International Holdings pays its CEO a majority of compensation through a salary. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 5 warning signs for Vision International Holdings (4 are concerning!) that you should be aware of before investing here.

Important note: Vision International Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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