Wan Lee is the CEO of Azeus Systems Holdings Ltd. (SGX:BBW), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Azeus Systems Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Azeus Systems Holdings
Comparing Azeus Systems Holdings Ltd.'s CEO Compensation With the industry
At the time of writing, our data shows that Azeus Systems Holdings Ltd. has a market capitalization of S$51m, and reported total annual CEO compensation of HK$618k for the year to March 2020. This means that the compensation hasn't changed much from last year. Notably, the salary which is HK$600.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below S$265m, we found that the median total CEO compensation was HK$617k. This suggests that Azeus Systems Holdings remunerates its CEO largely in line with the industry average. Moreover, Wan Lee also holds S$14m worth of Azeus Systems Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | HK$600k | HK$600k | 97% |
| Other | HK$18k | HK$18k | 3% |
| Total Compensation | HK$618k | HK$618k | 100% |
Speaking on an industry level, nearly 86% of total compensation represents salary, while the remainder of 14% is other remuneration. Investors will find it interesting that Azeus Systems Holdings pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Azeus Systems Holdings Ltd.'s Growth Numbers
Over the past three years, Azeus Systems Holdings Ltd. has seen its earnings per share (EPS) grow by 76% per year. In the last year, its revenue is up 20%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Azeus Systems Holdings Ltd. Been A Good Investment?
We think that the total shareholder return of 371%, over three years, would leave most Azeus Systems Holdings Ltd. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Wan receives almost all of their compensation through a salary. As we touched on above, Azeus Systems Holdings Ltd. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. The company is growing EPS and total shareholder returns have been pleasing. Indeed, many might consider that Wan is compensated rather modestly, given the solid company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which is significant) in Azeus Systems Holdings we think you should know about.
Important note: Azeus Systems Holdings 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.
If you’re looking to trade Azeus Systems Holdings, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
New: Manage All Your Stock Portfolios in One Place
We've created the ultimate portfolio companion for stock investors, and it's free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
This article by Simply Wall St is general in nature. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
About SGX:BBW
Azeus Systems Holdings
An investment holding company, provides IT products and services in Hong Kong, Asia, the United Kingdom, Europe, Australia, New Zealand, North America, South America, the Middle East, and Africa.
Outstanding track record with flawless balance sheet.
