Increases to Asia Orient Holdings Limited's (HKG:214) CEO Compensation Might Cool off for now

Key Insights

• Asia Orient Holdings will host 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 2,129% above industry average
• Asia Orient Holdings' EPS declined by 63% over the past three years while total shareholder loss over the past three years was 49%

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The underwhelming share price performance of Asia Orient Holdings Limited (HKG:214) in the past three years would have disappointed many shareholders. Per share earnings growth is also lacking, despite revenue growth. The AGM coming up on 25th of August will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

See our latest analysis for Asia Orient Holdings

Comparing Asia Orient Holdings Limited's CEO Compensation With The Industry

According to our data, Asia Orient Holdings Limited has a market capitalization of HK$265m, and paid its CEO total annual compensation worth HK$36m over the year to March 2025. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at HK$1.3m.

In comparison with other companies in the Hong Kong Real Estate industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.6m. Hence, we can conclude that Richard Poon is remunerated higher than the industry median. Moreover, Richard Poon also holds HK$174m worth of Asia Orient Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 84% of total compensation represents salary and 16% is other remuneration. A high-salary is usually a no-brainer when it comes to attracting the best executives, but Asia Orient Holdings 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 Orient Holdings Limited's Growth Numbers

Asia Orient Holdings Limited has reduced its earnings per share by 63% a year over the last three years. It achieved revenue growth of 32% 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 Orient Holdings Limited Been A Good Investment?

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

In Summary...

Asia Orient Holdings primarily uses non-salary benefits to reward its CEO. 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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 2 which are significant) in Asia Orient 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. 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.