Shan Chandrasekar became the CEO of Asian Television Network International Limited (CVE:SAT) in 1993, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing Asian Television Network International Limited's CEO Compensation With the industry
Our data indicates that Asian Television Network International Limited has a market capitalization of CA$3.1m, and total annual CEO compensation was reported as CA$341k for the year to December 2019. This means that the compensation hasn't changed much from last year. In particular, the salary of CA$315.2k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below CA$255m, we found that the median total CEO compensation was CA$681k. Accordingly, Asian Television Network International pays its CEO under the industry median. Furthermore, Shan Chandrasekar directly owns CA$2.2m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. Asian Television Network International pays out 93% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Asian Television Network International Limited's Growth
Over the last three years, Asian Television Network International Limited has shrunk its earnings per share by 52% per year. In the last year, its revenue is down 14%.
Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, 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?
Given the total shareholder loss of 71% over three years, many shareholders in Asian Television Network International Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we touched on above, Asian Television Network International Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. While we are quite underwhelmed with EPS growth, the shareholder returns over the past three years have also failed to impress us. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Asian Television Network International that you should be aware of before investing.
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.
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