Key Insights

• Vision Values Holdings to hold its Annual General Meeting on 28th of November
• Total pay for CEO Simon Lo includes HK$6.00m salary
• Total compensation is 356% above industry average
• Over the past three years, Vision Values Holdings' EPS fell by 13% and over the past three years, the total loss to shareholders 89%

Shareholders of Vision Values Holdings Limited (HKG:862) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also lacking, despite revenue growth. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 28th of November, where they can impact on future company performance by voting on resolutions, including executive compensation. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

Comparing Vision Values Holdings Limited's CEO Compensation With The Industry

According to our data, Vision Values Holdings Limited has a market capitalization of HK$94m, and paid its CEO total annual compensation worth HK$6.1m over the year to June 2024. This was the same amount the CEO received in the prior year. We note that the salary portion, which stands at HK$6.00m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong IT industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.3m. This suggests that Simon Lo is paid more than the median for the industry. Moreover, Simon Lo also holds HK$30m worth of Vision Values Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 90% of total compensation represents salary and 10% is other remuneration. Investors will find it interesting that Vision Values 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.

Vision Values Holdings Limited's Growth

Over the last three years, Vision Values Holdings Limited has shrunk its earnings per share by 13% per year. Its revenue is up 31% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS 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 Vision Values Holdings Limited Been A Good Investment?

With a total shareholder return of -89% over three years, Vision Values 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 Values Holdings pays its CEO a majority of compensation through a salary. The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company's remuneration policies and evaluate if the board's judgement and decision-making is aligned with that of the company's shareholders.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Vision Values Holdings (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Vision Values Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.