In This Article:
The CEO of Ajisen (China) Holdings Limited (HKG:538) is Wai Poon. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Ajisen (China) Holdings
How Does Wai Poon's Compensation Compare With Similar Sized Companies?
According to our data, Ajisen (China) Holdings Limited has a market capitalization of HK$2.4b, and paid its CEO total annual compensation worth CN¥1.9m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥1.8m. We examined companies with market caps from CN¥1.4b to CN¥5.6b, and discovered that the median CEO total compensation of that group was CN¥2.3m.
That means Wai Poon receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Ajisen (China) Holdings has changed over time.
Is Ajisen (China) Holdings Limited Growing?
Ajisen (China) Holdings Limited has reduced its earnings per share by an average of 24% a year, over the last three years (measured with a line of best fit). Its revenue is up 4.9% over last year.
Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Ajisen (China) Holdings Limited Been A Good Investment?
Given the total loss of 25% over three years, many shareholders in Ajisen (China) Holdings Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Wai Poon is paid around the same as most CEOs of similar size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying Ajisen (China) Holdings shares with their own money (free access).