Should Shareholders Worry About Asian Television Network International Limited's (CVE:SAT) CEO Compensation Package?

The underwhelming performance at Asian Television Network International Limited (CVE:SAT) recently has probably not pleased shareholders. At the upcoming AGM on 25 June 2021, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

Check out our latest analysis for Asian Television Network International

How Does Total Compensation For Shan Chandrasekar Compare With Other Companies In The Industry?

Our data indicates that Asian Television Network International Limited has a market capitalization of CA$5.0m, and total annual CEO compensation was reported as CA$325k for the year to December 2020. We note that's a small decrease of 4.6% on last year. We note that the salary portion, which stands at CA$315.2k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below CA$249m, we found that the median total CEO compensation was CA$566k. Accordingly, Asian Television Network International pays its CEO under the industry median. What's more, Shan Chandrasekar holds CA$3.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	CA$315k	CA$315k	97%
Other	CA$9.7k	CA$25k	3%
Total Compensation	CA$325k	CA$341k	100%

On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. Asian Television Network International is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with 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 2.8% per year. In the last year, its revenue is down 11%.

Its a bit disappointing to see that the company has failed to grow its EPS. And the impression is worse when you consider revenue is down year-on-year. 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?

The return of -49% over three years would not have pleased Asian Television Network International Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Shan receives almost all of their compensation through a salary. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

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. We did our research and spotted 3 warning signs for Asian Television Network International that investors should look into moving forward.

Switching gears from Asian Television Network International, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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