We Think Shareholders Are Less Likely To Approve A Pay Rise For Vico International Holdings Limited's (HKG:1621) CEO For Now

Key Insights

• Vico International Holdings' Annual General Meeting to take place on 10th of September
• Total pay for CEO Eric Hui includes HK$1.24m salary
• The total compensation is similar to the average for the industry
• Vico International Holdings' EPS grew by 10% over the past three years while total shareholder loss over the past three years was 15%

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As many shareholders of Vico International Holdings Limited (HKG:1621) will be aware, they have not made a gain on their investment in the past three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 10th of September. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Vico International Holdings

Comparing Vico International Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Vico International Holdings Limited has a market capitalization of HK$100m, and reported total annual CEO compensation of HK$1.3m for the year to March 2025. That's a notable increase of 26% on last year. Notably, the salary which is HK$1.24m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Oil and Gas industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.6m. So it looks like Vico International Holdings compensates Eric Hui in line with the median for the industry.

Speaking on an industry level, nearly 80% of total compensation represents salary, while the remainder of 20% is other remuneration. Vico International Holdings has gone down a largely traditional route, paying Eric Hui a high salary, giving it preference over non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Vico International Holdings Limited's Growth Numbers

Vico International Holdings Limited has seen its earnings per share (EPS) increase by 10% a year over the past three years. It saw its revenue drop 3.2% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Vico International Holdings Limited Been A Good Investment?

Since shareholders would have lost about 15% over three years, some Vico International Holdings Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Eric receives almost all of their compensation through a salary. The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for Vico International Holdings (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Vico International 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.