Yahoo Finance What Did UniVision Engineering Limited's (LON:UVEL) CEO Take Home Last Year?
Chun Pan Wong has been the CEO of UniVision Engineering Limited (LON:UVEL) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for UniVision Engineering
How Does Chun Pan Wong's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that UniVision Engineering Limited has a market cap of UK£8.2m, and is paying total annual CEO compensation of UK£81k. (This number is for the twelve months until March 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£73k. We examined a group of similar sized companies, with market capitalizations of below UK£166m. The median CEO total compensation in that group is UK£250k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at UniVision Engineering, below.
Is UniVision Engineering Limited Growing?
Over the last three years UniVision Engineering Limited has grown its earnings per share (EPS) by an average of 89% per year (using a line of best fit). In the last year, its revenue is up 90%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has UniVision Engineering Limited Been A Good Investment?
Boasting a total shareholder return of 333% over three years, UniVision Engineering Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
It appears that UniVision Engineering Limited remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Chun Pan Wong deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying UniVision Engineering shares with their own money (free access).
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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
