Yahoo Finance Here's What We Think About Vmoto Limited's (ASX:VMT) CEO Pay
Charles Chen became the CEO of Vmoto Limited (ASX:VMT) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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?
At the time of writing, our data says that Vmoto Limited has a market cap of AU$32m, and reported total annual CEO compensation of AU$350k for the year to December 2019. Notably, the salary of AU$350k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below AU$308m. The median CEO total compensation in that group is AU$390k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 55% of total compensation out of all the companies we analysed, while other remuneration made up 45% of the pie. At the company level, Vmoto pays Charles Chen solely through a salary, preferring to go down a conventional route.
So Charles Chen is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see, below, how CEO compensation at Vmoto has changed over time.
Is Vmoto Limited Growing?
Vmoto Limited has seen earnings per share (EPS) move positively by an average of 96% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 133%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Vmoto Limited Been A Good Investment?
Most shareholders would probably be pleased with Vmoto Limited for providing a total return of 127% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Remuneration for Charles Chen is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! On another note, we've spotted 3 warning signs for Vmoto that investors should look into moving forward.
Important note: Vmoto may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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. Thank you for reading.
