A & S Group (Holdings) Limited's (HKG:1737) CEO Will Probably Find It Hard To See A Huge Raise This Year

In the past three years, the share price of A & S Group (Holdings) Limited (HKG:1737) has struggled to generate growth for its shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 20 August 2021. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for A & S Group (Holdings)

How Does Total Compensation For Albert Chiu Compare With Other Companies In The Industry?

At the time of writing, our data shows that A & S Group (Holdings) Limited has a market capitalization of HK$194m, and reported total annual CEO compensation of HK$2.0m for the year to March 2021. That's just a smallish increase of 6.9% on last year. We note that the salary portion, which stands at HK$1.76m constitutes the majority of total compensation received by the CEO.

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

Component	2021	2020	Proportion (2021)
Salary	HK$1.8m	HK$1.9m	88%
Other	HK$238k	HK$18k	12%
Total Compensation	HK$2.0m	HK$1.9m	100%

Speaking on an industry level, nearly 78% of total compensation represents salary, while the remainder of 22% is other remuneration. A & S Group (Holdings) pays out 88% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A & S Group (Holdings) Limited's Growth

A & S Group (Holdings) Limited's earnings per share (EPS) grew 37% per year over the last three years. In the last year, its revenue is down 2.3%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has A & S Group (Holdings) Limited Been A Good Investment?

Since shareholders would have lost about 5.8% over three years, some A & S Group (Holdings) Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At 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 will likely improve performance in the future.

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 4 warning signs (and 1 which is concerning) in A & S Group (Holdings) we think you should know about.

Switching gears from A & S Group (Holdings), if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.
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