Yahoo Finance Here's Why Shareholders May Want To Be Cautious With Increasing Asia Strategic Holdings Limited's (LON:ASIA) CEO Pay Packet
Key Insights
Asia Strategic Holdings' Annual General Meeting to take place on 7th of March
CEO Enrico Cesenni's total compensation includes salary of US$150.0k
The total compensation is similar to the average for the industry
Asia Strategic Holdings' EPS grew by 6.1% over the past three years while total shareholder loss over the past three years was 33%
The underwhelming share price performance of Asia Strategic Holdings Limited (LON:ASIA) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 7th of March. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.
View our latest analysis for Asia Strategic Holdings
How Does Total Compensation For Enrico Cesenni Compare With Other Companies In The Industry?
Our data indicates that Asia Strategic Holdings Limited has a market capitalization of US$18m, and total annual CEO compensation was reported as US$377k for the year to September 2023. That's a notable increase of 16% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$150k.
On comparing similar-sized companies in the British Real Estate industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$491k. This suggests that Asia Strategic Holdings remunerates its CEO largely in line with the industry average. Furthermore, Enrico Cesenni directly owns US$213k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$150k | US$150k | 40% |
Other | US$227k | US$174k | 60% |
Total Compensation | US$377k | US$324k | 100% |
On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. In Asia Strategic Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Asia Strategic Holdings Limited's Growth
Over the past three years, Asia Strategic Holdings Limited has seen its earnings per share (EPS) grow by 6.1% per year. In the last year, its revenue is up 34%.
It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. 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 Asia Strategic Holdings Limited Been A Good Investment?
Few Asia Strategic Holdings Limited shareholders would feel satisfied with the return of -33% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Asia Strategic Holdings you should be aware of, and 2 of them can't be ignored.
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.
