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How Much is Advanced Share Registry Limited's (ASX:ASW) CEO Getting Paid?

The CEO of Advanced Share Registry Limited (ASX:ASW) is Kim Phin Chong. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Advanced Share Registry

How Does Kim Phin Chong's Compensation Compare With Similar Sized Companies?

According to our data, Advanced Share Registry Limited has a market capitalization of AU$30m, and paid its CEO total annual compensation worth AU$201k over the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$183k. We took a group of companies with market capitalizations below AU$306m, and calculated the median CEO total compensation to be AU$383k.

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Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Advanced Share Registry. On a sector level, around 62% of total compensation represents salary and 38% is other remuneration. Advanced Share Registry pays out 91% of aggregate payment in the shape of a salary, which is significantly higher than the industry average.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion. The graphic below shows how CEO compensation at Advanced Share Registry has changed from year to year.

ASX:ASW CEO Compensation May 26th 2020
ASX:ASW CEO Compensation May 26th 2020

Is Advanced Share Registry Limited Growing?

Over the last three years Advanced Share Registry Limited has shrunk its earnings per share by an average of 7.7% per year (measured with a line of best fit). In the last year, its revenue is down 1.8%.

Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Advanced Share Registry Limited Been A Good Investment?

With a three year total loss of 0.5%, Advanced Share Registry Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Advanced Share Registry Limited is currently paying its CEO below what is normal for companies of its size.

The compensation paid to Kim Phin Chong is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. Moving away from CEO compensation for the moment, we've identified 4 warning signs for Advanced Share Registry that you should be aware of before investing.

If you want to buy a stock that is better than Advanced Share Registry, this free list of high return, low debt companies is a great place to look.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

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. Thank you for reading.