Shareholders Will Probably Hold Off On Increasing A & S Group (Holdings) Limited's (HKG:1737) CEO Compensation For The Time Being

Key Insights

• A & S Group (Holdings)'s Annual General Meeting to take place on 13th of September
• Salary of HK$1.84m is part of CEO Albert Chiu's total remuneration
• The total compensation is 34% higher than the average for the industry
• A & S Group (Holdings)'s EPS grew by 12% over the past three years while total shareholder return over the past three years was 23%

CEO Albert Chiu has done a decent job of delivering relatively good performance at A & S Group (Holdings) Limited (HKG:1737) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 13th of September. However, some shareholders may still want to keep CEO compensation within reason.

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

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

Our data indicates that A & S Group (Holdings) Limited has a market capitalization of HK$102m, and total annual CEO compensation was reported as HK$2.3m for the year to March 2023. That's mostly flat as compared to the prior year's compensation. In particular, the salary of HK$1.84m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Logistics industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.7m. Accordingly, our analysis reveals that A & S Group (Holdings) Limited pays Albert Chiu north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	HK$1.8m	HK$1.9m	82%
Other	HK$416k	HK$267k	18%
Total Compensation	HK$2.3m	HK$2.2m	100%

On an industry level, roughly 48% of total compensation represents salary and 52% is other remuneration. It's interesting to note that A & S Group (Holdings) pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A & S Group (Holdings) Limited's Growth

Over the past three years, A & S Group (Holdings) Limited has seen its earnings per share (EPS) grow by 12% per year. In the last year, its revenue is down 2.3%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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?

A & S Group (Holdings) Limited has served shareholders reasonably well, with a total return of 23% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for A & S Group (Holdings) that you should be aware of before investing.

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.