Yahoo Finance Here's What We Think About Vmoto Limited's (ASX:VMT) CEO Pay
Charles Chen has been the CEO of Vmoto Limited (ASX:VMT) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Vmoto
How Does Charles Chen's Compensation Compare With Similar Sized Companies?
Our data indicates that Vmoto Limited is worth AU$27m, and total annual CEO compensation is AU$350k. (This is based on the year to December 2018). Notably, the salary of AU$350k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under AU$296m, and the median CEO total compensation was AU$357k.
That means Charles Chen receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Vmoto has changed over time.
Is Vmoto Limited Growing?
On average over the last three years, Vmoto Limited has shrunk earnings per share by 36% each year (measured with a line of best fit). Its revenue is up 30% over last year.
The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Vmoto Limited Been A Good Investment?
Given the total loss of 34% over three years, many shareholders in Vmoto Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Charles Chen is paid around the same as most CEOs of similar size companies.
The company cannot boast particularly strong per share growth. And shareholder returns have been disappointing over the last three years. So it would take a bold person to suggest the pay is too modest. Whatever your view on compensation, you might want to check if insiders are buying or selling Vmoto shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.