Shareholders May Not Be So Generous With Vitasoy International Holdings Limited's (HKG:345) CEO Compensation And Here's Why

Key Insights

• Vitasoy International Holdings will host its Annual General Meeting on 25th of August
• CEO Roberto Guidetti's total compensation includes salary of HK$8.28m
• The total compensation is 1,009% higher than the average for the industry
• Over the past three years, Vitasoy International Holdings' EPS grew by 106% and over the past three years, the total loss to shareholders 17%

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Shareholders of Vitasoy International Holdings Limited (HKG:345) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 25th of August. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Vitasoy International Holdings

How Does Total Compensation For Roberto Guidetti Compare With Other Companies In The Industry?

According to our data, Vitasoy International Holdings Limited has a market capitalization of HK$9.9b, and paid its CEO total annual compensation worth HK$22m over the year to March 2025. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$8.3m.

On comparing similar companies from the Hong Kong Food industry with market caps ranging from HK$7.8b to HK$25b, we found that the median CEO total compensation was HK$2.0m. This suggests that Roberto Guidetti is paid more than the median for the industry. Moreover, Roberto Guidetti also holds HK$62m worth of Vitasoy International Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 82% of total compensation out of all the companies we analyzed, while other remuneration made up 18% of the pie. It's interesting to note that Vitasoy International Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Vitasoy International Holdings Limited's Growth Numbers

Vitasoy International Holdings Limited has seen its earnings per share (EPS) increase by 106% a year over the past three years. Revenue was pretty flat on last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Vitasoy International Holdings Limited Been A Good Investment?

With a three year total loss of 17% for the shareholders, Vitasoy International Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

So you may want to check if insiders are buying Vitasoy International Holdings shares with their own money (free access).

Important note: Vitasoy 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.