How Much Is Asia Cassava Resources Holdings Limited (HKG:841) Paying Its CEO?
The CEO of Asia Cassava Resources Holdings Limited (HKG:841) is Ming Chuan Chu, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Asia Cassava Resources Holdings.
View our latest analysis for Asia Cassava Resources Holdings
Comparing Asia Cassava Resources Holdings Limited's CEO Compensation With the industry
At the time of writing, our data shows that Asia Cassava Resources Holdings Limited has a market capitalization of HK$181m, and reported total annual CEO compensation of HK$1.6m for the year to March 2020. That is, the compensation was roughly the same as last year. In particular, the salary of HK$1.55m, 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 HK$1.6b, we found that the median total CEO compensation was HK$1.6m. This suggests that Asia Cassava Resources Holdings remunerates its CEO largely in line with the industry average. Moreover, Ming Chuan Chu also holds HK$117m worth of Asia Cassava Resources Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | HK$1.6m | HK$1.6m | 99% |
| Other | HK$18k | HK$18k | 1% |
| Total Compensation | HK$1.6m | HK$1.6m | 100% |
Speaking on an industry level, nearly 81% of total compensation represents salary, while the remainder of 19% is other remuneration. Asia Cassava Resources Holdings 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.
Asia Cassava Resources Holdings Limited's Growth
Over the last three years, Asia Cassava Resources Holdings Limited has shrunk its earnings per share by 78% per year. Its revenue is up 24% over the last year.
The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Asia Cassava Resources Holdings Limited Been A Good Investment?
Given the total shareholder loss of 48% over three years, many shareholders in Asia Cassava Resources Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
Ming Chuan receives almost all of their compensation through a salary. As previously discussed, Ming Chuan is compensated close to the median for companies of its size, and which belong to the same industry. But revenue growth seems to be inching northward, a heartening sign for the company. Contrarily, shareholder returns are in the red over the same stretch. EPS growth is bleak as well, adding fuel to the fire. It's tough for us to say Ming Chuan is overpaid but a mixed bag in terms of performance will surely irk shareholders and reduce chances of a raise.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 2 which are a bit concerning) in Asia Cassava Resources Holdings we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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About SEHK:841
Asia Cassava Resources Holdings
An investment holding company, engages in the procurement, processing, warehousing, and sale of dried cassava chips in Mainland China, Hong Kong, and Thailand.
Slight and fair value.
