In 1984, Richard Poon was appointed CEO of Asia Standard International Group Limited (HKG:129). 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.
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$1.2b, and reported total annual CEO compensation of HK$23m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$2.3m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$775m to HK$3.1b. The median total CEO compensation was HK$2.3m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Asia Standard International Group stands. Speaking on an industry level, we can see that nearly 68% of total compensation represents salary, while the remainder of 32% is other remuneration. It's interesting to note that Asia Standard International Group allocates a smaller portion of compensation to salary in comparison to the broader industry.
It would therefore appear that Asia Standard International Group Limited pays Richard Poon more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. You can see, below, how CEO compensation at Asia Standard International Group has changed over time.
Is Asia Standard International Group Limited Growing?
Asia Standard International Group Limited has reduced its earnings per share by an average of 7.5% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 29%.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one 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 Asia Standard International Group Limited Been A Good Investment?
With a three year total loss of 53%, Asia Standard International Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Asia Standard International Group Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. CEO compensation is an important area to keep your eyes on, but we've also identified 5 warning signs for Asia Standard International Group (1 doesn't sit too well with us!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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