We Discuss Why ASMPT Limited's (HKG:522) CEO Compensation May Be Closely Reviewed

Key Insights

• ASMPT to hold its Annual General Meeting on 7th of May
• CEO Robin Gerard Ng's total compensation includes salary of HK$16.1m
• The overall pay is 62% above the industry average
• ASMPT's three-year loss to shareholders was 29% while its EPS was down 52% over the past three years

Our free stock report includes 2 warning signs investors should be aware of before investing in ASMPT. Read for free now.

ASMPT Limited (HKG:522) has not performed well recently and CEO Robin Gerard Ng will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 7th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for ASMPT

How Does Total Compensation For Robin Gerard Ng Compare With Other Companies In The Industry?

Our data indicates that ASMPT Limited has a market capitalization of HK$22b, and total annual CEO compensation was reported as HK$17m for the year to December 2024. That's a notable increase of 15% on last year. We note that the salary portion, which stands at HK$16.1m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Semiconductor industry with market capitalizations ranging from HK$16b to HK$50b, the reported median CEO total compensation was HK$11m. Hence, we can conclude that Robin Gerard Ng is remunerated higher than the industry median. What's more, Robin Gerard Ng holds HK$26m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	HK$16m	HK$14m	92%
Other	HK$1.3m	HK$1.3m	8%
Total Compensation	HK$17m	HK$15m	100%

On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. ASMPT pays out 92% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ASMPT Limited's Growth

Over the last three years, ASMPT Limited has shrunk its earnings per share by 52% per year. Its revenue is down 10.0% over the previous year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has ASMPT Limited Been A Good Investment?

With a three year total loss of 29% for the shareholders, ASMPT Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for ASMPT that investors should look into moving forward.

Important note: ASMPT is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.