Shareholders Will Most Likely Find Platt Nera International Limited's (HKG:1949) CEO Compensation Acceptable

Key Insights

• Platt Nera International to hold its Annual General Meeting on 21st of June
• CEO Prapan Asvaplungprohm's total compensation includes salary of ฿5.37m
• The total compensation is similar to the average for the industry
• Over the past three years, Platt Nera International's EPS grew by 7.6% and over the past three years, the total shareholder return was 90%

CEO Prapan Asvaplungprohm has done a decent job of delivering relatively good performance at Platt Nera International Limited (HKG:1949) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 21st of June. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for Platt Nera International

Comparing Platt Nera International Limited's CEO Compensation With The Industry

Our data indicates that Platt Nera International Limited has a market capitalization of HK$276m, and total annual CEO compensation was reported as ฿5.9m for the year to December 2023. That's slightly lower by 5.0% over the previous year. We note that the salary portion, which stands at ฿5.37m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong IT industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was ฿5.7m. From this we gather that Prapan Asvaplungprohm is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	฿5.4m	฿5.3m	90%
Other	฿572k	฿975k	10%
Total Compensation	฿5.9m	฿6.3m	100%

On an industry level, around 85% of total compensation represents salary and 15% is other remuneration. Our data reveals that Platt Nera International allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Platt Nera International Limited's Growth

Over the past three years, Platt Nera International Limited has seen its earnings per share (EPS) grow by 7.6% per year. Its revenue is up 80% over the last year.

We like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. 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 Platt Nera International Limited Been A Good Investment?

Boasting a total shareholder return of 90% over three years, Platt Nera International Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

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. That's why we did our research, and identified 3 warning signs for Platt Nera International (of which 1 makes us a bit uncomfortable!) 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com