Shareholders May Be More Conservative With Asia Standard International Group Limited's (HKG:129) CEO Compensation For Now

Key Insights

• Asia Standard International Group to hold its Annual General Meeting on 25th of August
• Salary of HK$1.30m is part of CEO Richard Poon's total remuneration
• Total compensation is 1,696% above industry average
• Asia Standard International Group's EPS declined by 75% over the past three years while total shareholder loss over the past three years was 48%

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In the past three years, the share price of Asia Standard International Group Limited (HKG:129) has struggled to grow and now shareholders are sitting on a loss. Per share earnings growth is also lacking, despite revenue growth. Shareholders will have a chance to take their concerns to the board at the next AGM on 25th of August and vote on resolutions including executive compensation, which studies show may have an impact on company performance. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

View our latest analysis for Asia Standard International Group

How Does Total Compensation For Richard Poon Compare With Other Companies In The Industry?

Our data indicates that Asia Standard International Group Limited has a market capitalization of HK$448m, and total annual CEO compensation was reported as HK$29m for the year to March 2025. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$1.3m.

For comparison, other companies in the Hong Kong Real Estate industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.6m. Accordingly, our analysis reveals that Asia Standard International Group Limited pays Richard Poon north of the industry median. What's more, Richard Poon holds HK$412k worth of shares in the company in their own name.

Speaking on an industry level, nearly 84% of total compensation represents salary, while the remainder of 16% is other remuneration. A high-salary is usually a no-brainer when it comes to attracting the best executives, but Asia Standard International Group paid Richard Poon a nominal salary to the CEO over the past 12 months, instead focusing on non-salary compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Asia Standard International Group Limited's Growth Numbers

Asia Standard International Group Limited has reduced its earnings per share by 75% a year over the last three years. It achieved revenue growth of 39% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Asia Standard International Group Limited Been A Good Investment?

With a total shareholder return of -48% over three years, Asia Standard International Group Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Asia Standard International Group prefers rewarding its CEO through non-salary benefits. The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

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 3 warning signs (and 2 which can't be ignored) in Asia Standard International Group we think you should know about.

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.