In 1984 Richard Poon was appointed CEO of Asia Standard International Group Limited (HKG:129). 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Richard Poon's Compensation Compare With Similar Sized Companies?
Our data indicates that Asia Standard International Group Limited is worth HK$1.6b, and total annual CEO compensation was reported as HK$23m for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at HK$2.3m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from HK$783m to HK$3.1b, and discovered that the median CEO total compensation of that group was HK$2.3m.
As you can see, Richard Poon is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Asia Standard International Group Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Asia Standard International Group, below.
Is Asia Standard International Group Limited Growing?
On average over the last three years, Asia Standard International Group Limited has shrunk earnings per share by 7.5% each year (measured with a line of best fit). It achieved revenue growth of 29% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. 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 might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Asia Standard International Group Limited Been A Good Investment?
With a three year total loss of 20%, Asia Standard International Group Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Asia Standard International Group Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Asia Standard International Group.
Important note: Asia Standard International Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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