Why We Think BOE Varitronix Limited's (HKG:710) CEO Compensation Is Not Excessive At All

Key Insights

• BOE Varitronix will host its Annual General Meeting on 25th of June
• Total pay for CEO Ning Su includes HK$1.01m salary
• The overall pay is 36% below the industry average
• BOE Varitronix's EPS grew by 3.1% over the past three years while total shareholder loss over the past three years was 38%

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Performance at BOE Varitronix Limited (HKG:710) has been rather uninspiring recently and shareholders may be wondering how CEO Ning Su plans to fix this. At the next AGM coming up on 25th of June, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out our latest analysis for BOE Varitronix

How Does Total Compensation For Ning Su Compare With Other Companies In The Industry?

At the time of writing, our data shows that BOE Varitronix Limited has a market capitalization of HK$5.6b, and reported total annual CEO compensation of HK$3.0m for the year to December 2024. Notably, that's a decrease of 24% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$1.0m.

On comparing similar companies from the Hong Kong Electronic industry with market caps ranging from HK$3.1b to HK$13b, we found that the median CEO total compensation was HK$4.7m. Accordingly, BOE Varitronix pays its CEO under the industry median. What's more, Ning Su holds HK$12m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. It's interesting to note that BOE Varitronix allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

BOE Varitronix Limited's Growth

BOE Varitronix Limited's earnings per share (EPS) grew 3.1% per year over the last three years. Its revenue is up 25% over the last year.

This revenue growth could really point to a brighter future. And, while modest, the EPS growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has BOE Varitronix Limited Been A Good Investment?

Few BOE Varitronix Limited shareholders would feel satisfied with the return of -38% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss is certainly disheartening. Perhaps the poor price performance may have something to do with the the fact that earnings per share growth has not been performing as strongly either. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for BOE Varitronix that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.