This Is Why Asiaray Media Group Limited's (HKG:1993) CEO Compensation Looks Appropriate

Key Insights

• Asiaray Media Group's Annual General Meeting to take place on 3rd of June
• Total pay for CEO Vincent Lam includes CN¥1.22m salary
• The total compensation is 32% less than the average for the industry
• Asiaray Media Group's EPS grew by 39% over the past three years while total shareholder loss over the past three years was 33%

Performance at Asiaray Media Group Limited (HKG:1993) has been rather uninspiring recently and shareholders may be wondering how CEO Vincent Lam plans to fix this. At the next AGM coming up on 3rd of June, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out our latest analysis for Asiaray Media Group

How Does Total Compensation For Vincent Lam Compare With Other Companies In The Industry?

At the time of writing, our data shows that Asiaray Media Group Limited has a market capitalization of HK$655m, and reported total annual CEO compensation of CN¥1.2m for the year to December 2023. We note that's a decrease of 12% compared to last year. Notably, the salary which is CN¥1.22m, represents most of the total compensation being paid.

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¥1.8m. Accordingly, Asiaray Media Group pays its CEO under the industry median. What's more, Vincent Lam holds HK$402m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CN¥1.2m	CN¥1.4m	99%
Other	CN¥16k	CN¥16k	1%
Total Compensation	CN¥1.2m	CN¥1.4m	100%

On an industry level, around 85% of total compensation represents salary and 15% is other remuneration. Asiaray Media Group has gone down a largely traditional route, paying Vincent Lam a high salary, giving it preference over 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 39% per year. It saw its revenue drop 2.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Asiaray Media Group Limited Been A Good Investment?

The return of -33% over three years would not have pleased Asiaray Media Group Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Vincent receives almost all of their compensation through a salary. The fact that shareholders are sitting on a loss is certainly disheartening. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. A key question may be why the fundamentals have not yet been reflected into the share price. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Asiaray Media Group (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

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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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.