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Our View On Asian Television Network International's (CVE:SAT) CEO Pay

Shan Chandrasekar became the CEO of Asian Television Network International Limited (CVE:SAT) in 1993, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Asian Television Network International pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Asian Television Network International

Comparing Asian Television Network International Limited's CEO Compensation With the industry

At the time of writing, our data shows that Asian Television Network International Limited has a market capitalization of CA$2.3m, and reported total annual CEO compensation of CA$341k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. In particular, the salary of CA$315.2k, makes up a huge portion of the total compensation being paid to the CEO.

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For comparison, other companies in the industry with market capitalizations below CA$267m, reported a median total CEO compensation of CA$666k. This suggests that Shan Chandrasekar is paid below the industry median. Furthermore, Shan Chandrasekar directly owns CA$1.6m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2019

2018

Proportion (2019)

Salary

CA$315k

CA$315k

93%

Other

CA$25k

CA$17k

7%

Total Compensation

CA$341k

CA$332k

100%

On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. Asian Television Network International pays out 93% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
ceo-compensation

A Look at Asian Television Network International Limited's Growth Numbers

Over the last three years, Asian Television Network International Limited has shrunk its earnings per share by 91% per year. It saw its revenue drop 19% over the last year.

Few shareholders would be pleased to read that earnings have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Asian Television Network International Limited Been A Good Investment?

Since shareholders would have lost about 86% over three years, some Asian Television Network International Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As previously discussed, Shan is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Earnings growth has failed to impress us, and the same can be said about shareholder returns. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Asian Television Network International that investors should look into moving forward.

Switching gears from Asian Television Network International, 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.