Here's Why Shareholders May Want To Be Cautious With Increasing Asiaray Media Group Limited's (HKG:1993) CEO Pay Packet

Key Insights

• Asiaray Media Group's Annual General Meeting to take place on 3rd of June
• CEO Vincent Lam's total compensation includes salary of CN¥1.34m
• The total compensation is similar to the average for the industry
• Asiaray Media Group's EPS grew by 53% over the past three years while total shareholder loss over the past three years was 17%

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In the past three years, the share price of Asiaray Media Group Limited (HKG:1993) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 3rd of June. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Asiaray Media Group

Comparing Asiaray Media Group Limited's CEO Compensation With The Industry

According to our data, Asiaray Media Group Limited has a market capitalization of HK$406m, and paid its CEO total annual compensation worth CN¥1.4m over the year to December 2024. That's a notable increase of 9.8% on last year. In particular, the salary of CN¥1.34m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Media industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.7m. From this we gather that Vincent Lam is paid around the median for CEOs in the industry. What's more, Vincent Lam holds HK$249m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 81% of total compensation represents salary and 19% is other remuneration. Asiaray Media Group 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 total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Asiaray Media Group Limited's Growth Numbers

Over the past three years, Asiaray Media Group Limited has seen its earnings per share (EPS) grow by 53% per year. It saw its revenue drop 34% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Asiaray Media Group Limited Been A Good Investment?

Since shareholders would have lost about 17% over three years, some Asiaray Media Group Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Vincent receives almost all of their compensation through a salary. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Asiaray Media Group that investors should be aware of in a dynamic business environment.

Switching gears from Asiaray Media Group, 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.