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Does Asiaray Media Group Limited's (HKG:1993) CEO Salary Reflect Performance?

Simply Wall St

The CEO of Asiaray Media Group Limited (HKG:1993) is Vincent Lam. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Asiaray Media Group

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

According to our data, Asiaray Media Group Limited has a market capitalization of HK$2.9b, and paid its CEO total annual compensation worth HK$1.4m over the year to December 2018. Notably, the salary of HK$1.4m is the vast majority of the CEO compensation. We examined companies with market caps from HK$1.6b to HK$6.2b, and discovered that the median CEO total compensation of that group was HK$2.6m.

Most shareholders would consider it a positive that Vincent Lam takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at Asiaray Media Group has changed from year to year.

SEHK:1993 CEO Compensation, January 1st 2020

Is Asiaray Media Group Limited Growing?

On average over the last three years, Asiaray Media Group Limited has grown earnings per share (EPS) by 57% each year (using a line of best fit). In the last year, its revenue is up 2.0%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Asiaray Media Group Limited Been A Good Investment?

Boasting a total shareholder return of 115% over three years, Asiaray Media Group 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...

It looks like Asiaray Media Group Limited pays its CEO less than similar sized companies.

Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Vincent Lam deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Asiaray Media Group.

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.