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Is Advanced Share Registry Limited (ASX:ASW) Excessively Paying Its CEO?

Simply Wall St

Kim Phin Chong is the CEO of Advanced Share Registry Limited (ASX:ASW). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Advanced Share Registry

How Does Kim Phin Chong's Compensation Compare With Similar Sized Companies?

Our data indicates that Advanced Share Registry Limited is worth AU$30m, and total annual CEO compensation was reported as AU$255k for the year to June 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$231k. We took a group of companies with market capitalizations below AU$293m, and calculated the median CEO total compensation to be AU$370k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at Advanced Share Registry has changed over time.

ASX:ASW CEO Compensation, December 3rd 2019

Is Advanced Share Registry Limited Growing?

Over the last three years, Advanced Share Registry Limited has not seen its earnings per share change much, though there is a positive trend. Its revenue is down 11% over last year.

I generally like to see a little revenue growth, but the modest improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Advanced Share Registry Limited Been A Good Investment?

Advanced Share Registry Limited has generated a total shareholder return of 10% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Advanced Share Registry Limited is currently paying its CEO below what is normal for companies of its size.

Kim Phin Chong receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, from my perspective. However I do not find the CEO compensation to be concerning. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Advanced Share Registry (free visualization of insider trades).

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.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.