It Looks Like PanAsialum Holdings Company Limited's (HKG:2078) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• PanAsialum Holdings' Annual General Meeting to take place on 31st of May
• Total pay for CEO Zhaolong Pan includes HK$2.15m salary
• The total compensation is similar to the average for the industry
• PanAsialum Holdings' three-year loss to shareholders was 69% while its EPS was down 69% over the past three years

The results at PanAsialum Holdings Company Limited (HKG:2078) have been quite disappointing recently and CEO Zhaolong Pan bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 31st of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for PanAsialum Holdings

Comparing PanAsialum Holdings Company Limited's CEO Compensation With The Industry

At the time of writing, our data shows that PanAsialum Holdings Company Limited has a market capitalization of HK$108m, and reported total annual CEO compensation of HK$2.3m for the year to December 2023. That's just a smallish increase of 6.2% on last year. We note that the salary portion, which stands at HK$2.15m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Hong Kong Electronic industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.4m. From this we gather that Zhaolong Pan is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	HK$2.2m	HK$2.0m	94%
Other	HK$138k	HK$138k	6%
Total Compensation	HK$2.3m	HK$2.2m	100%

Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. According to our research, PanAsialum Holdings has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at PanAsialum Holdings Company Limited's Growth Numbers

PanAsialum Holdings Company Limited has reduced its earnings per share by 69% a year over the last three years. In the last year, its revenue is down 36%.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has PanAsialum Holdings Company Limited Been A Good Investment?

Few PanAsialum Holdings Company Limited shareholders would feel satisfied with the return of -69% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. 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 pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which shouldn't be ignored) in PanAsialum Holdings 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.