The CEO of ITE (Holdings) Limited (HKG:8092) is Vincent Lau. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for ITE (Holdings)

How Does Vincent Lau's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that ITE (Holdings) Limited has a market cap of HK$24m, and reported total annual CEO compensation of HK$1.9m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$1.7m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of ITE (Holdings). On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. ITE (Holdings) does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.

So Vincent Lau receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see a visual representation of the CEO compensation at ITE (Holdings), below.

Is ITE (Holdings) Limited Growing?

On average over the last three years, ITE (Holdings) Limited has shrunk earnings per share by 66% each year (measured with a line of best fit). It achieved revenue growth of 102% over the last year.

Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has ITE (Holdings) Limited Been A Good Investment?

Given the total loss of 81% over three years, many shareholders in ITE (Holdings) Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Vincent Lau is paid around what is normal for the leaders of comparable size companies.

The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So suffice it to say we don't think the compensation is modest. On another note, ITE (Holdings) has 4 warning signs (and 3 which can't be ignored) we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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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. 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. Thank you for reading.