Vital Innovations Holdings Limited's (HKG:6133) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Vital Innovations Holdings' Annual General Meeting to take place on 18th of June
• CEO Victor Rong's total compensation includes salary of CN¥795.0k
• The overall pay is comparable to the industry average
• Vital Innovations Holdings' EPS declined by 2.8% over the past three years while total shareholder return over the past three years was 51%

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Under the guidance of CEO Victor Rong, Vital Innovations Holdings Limited (HKG:6133) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 18th of June. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for Vital Innovations Holdings

Comparing Vital Innovations Holdings Limited's CEO Compensation With The Industry

Our data indicates that Vital Innovations Holdings Limited has a market capitalization of HK$285m, and total annual CEO compensation was reported as CN¥863k for the year to December 2024. This was the same as last year. We note that the salary portion, which stands at CN¥795.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Tech industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥737k. From this we gather that Victor Rong is paid around the median for CEOs in the industry.

Speaking on an industry level, nearly 92% of total compensation represents salary, while the remainder of 8% is other remuneration. There isn't a significant difference between Vital Innovations Holdings and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Vital Innovations Holdings Limited's Growth

Over the last three years, Vital Innovations Holdings Limited has shrunk its earnings per share by 2.8% per year. It achieved revenue growth of 27% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Vital Innovations Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Vital Innovations Holdings Limited for providing a total return of 51% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The overall company performance has been commendable, however there are still areas for improvement. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Vital Innovations Holdings that investors should be aware of in a dynamic business environment.

Switching gears from Vital Innovations 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.

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

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.