How Should Investors React To Asian Television Network International Limited's (CVE:SAT) CEO Pay?
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Shan Chandrasekar became the CEO of Asian Television Network International Limited (CVE:SAT) in 1993. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Asian Television Network International
How Does Shan Chandrasekar's Compensation Compare With Similar Sized Companies?
According to our data, Asian Television Network International Limited has a market capitalization of CA$2.9m, and pays its CEO total annual compensation worth CA$323k. (This number is for the twelve months until December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$315k. We looked at a group of companies with market capitalizations under CA$269m, and the median CEO total compensation was CA$144k.
Thus we can conclude that Shan Chandrasekar receives more in total compensation than the median of a group of companies in the same market, and of similar size to Asian Television Network International 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 Asian Television Network International, below.
Is Asian Television Network International Limited Growing?
Asian Television Network International Limited has reduced its earnings per share by an average of 118% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -23%.
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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Asian Television Network International Limited Been A Good Investment?
With a three year total loss of 93%, Asian Television Network International Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Asian Television Network International Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Asian Television Network International.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting companies.
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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. Thank you for reading.
About TSXV:SAT
Asian Television Network International
Engages in the specialty, pay television broadcasting, and advertising primarily for the south Asian community in Canada.
Slight and fair value.