Should You Be Pleased About The CEO Pay At Asia Standard International Group Limited’s (HKG:129)
Richard Poon has been the CEO of Asia Standard International Group Limited (HKG:129) since 1984. 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 – 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 Standard International Group
How Does Richard Poon’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Asia Standard International Group Limited has a market cap of HK$1.9b, and is paying total annual CEO compensation of HK$22m. (This is based on the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at HK$1.3m. We examined companies with market caps from HK$782m to HK$3.1b, and discovered that the median CEO compensation of that group was HK$2.1m.
Thus we can conclude that Richard Poon receives more in total compensation than the median of a group of companies in the same market, and of similar size to Asia Standard International Group Limited. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Asia Standard International Group has changed from year to year.
Is Asia Standard International Group Limited Growing?
Asia Standard International Group Limited has increased its earnings per share (EPS) by an average of 18% a year, over the last three years In the last year, its revenue is up 15%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Asia Standard International Group Limited Been A Good Investment?
Asia Standard International Group Limited has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
We compared total CEO remuneration at Asia Standard International Group Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven’t been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. Shareholders may want to check for free if Asia Standard International Group insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
