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Is Asia Tele-Net and Technology Corporation Limited (HKG:679) Excessively Paying Its CEO?

Simply Wall St

Wilfred Lam is the CEO of Asia Tele-Net and Technology Corporation Limited (HKG:679). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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 Asia Tele-Net and Technology

How Does Wilfred Lam's Compensation Compare With Similar Sized Companies?

According to our data, Asia Tele-Net and Technology Corporation Limited has a market capitalization of HK$631m, and paid its CEO total annual compensation worth HK$3.6m over the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$3.6m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.

Thus we can conclude that Wilfred Lam receives more in total compensation than the median of a group of companies in the same market, and of similar size to Asia Tele-Net and Technology Corporation Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Asia Tele-Net and Technology, below.

SEHK:679 CEO Compensation, March 9th 2020

Is Asia Tele-Net and Technology Corporation Limited Growing?

On average over the last three years, Asia Tele-Net and Technology Corporation Limited has shrunk earnings per share by 48% each year (measured with a line of best fit). In the last year, its revenue is down 27%.

Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Asia Tele-Net and Technology Corporation Limited Been A Good Investment?

Boasting a total shareholder return of 40% over three years, Asia Tele-Net and Technology Corporation Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We examined the amount Asia Tele-Net and Technology Corporation Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Earnings per share have not grown in three years, and the revenue growth fails to impress us. However, we can't argue with the strong returns to shareholders, over the same time period. Considering this, shareholders are probably not too worried about the CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Asia Tele-Net and Technology shares (free trial).

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.