Key Insights

• BOE Varitronix will host its Annual General Meeting on 25th of June
• CEO Ning Su's total compensation includes salary of HK$1.01m
• The total compensation is similar to the average for the industry
• BOE Varitronix's total shareholder return over the past three years was 1.5% while its EPS grew by 86% over the past three years

CEO Ning Su has done a decent job of delivering relatively good performance at BOE Varitronix Limited (HKG:710) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 25th of June. We present our case of why we think CEO compensation looks fair.

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

According to our data, BOE Varitronix Limited has a market capitalization of HK$4.1b, and paid its CEO total annual compensation worth HK$4.0m over the year to December 2023. We note that's an increase of 9.8% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$1.0m.

On examining similar-sized companies in the Hong Kong Electronic industry with market capitalizations between HK$1.6b and HK$6.2b, we discovered that the median CEO total compensation of that group was HK$5.3m. This suggests that BOE Varitronix remunerates its CEO largely in line with the industry average. What's more, Ning Su holds HK$6.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 79% of total compensation out of all the companies we analyzed, while other remuneration made up 21% of the pie. In BOE Varitronix's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at BOE Varitronix Limited's Growth Numbers

Over the past three years, BOE Varitronix Limited has seen its earnings per share (EPS) grow by 86% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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?

BOE Varitronix Limited has generated a total shareholder return of 1.5% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for BOE Varitronix that investors should think about before committing capital to this stock.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com