In 2005 Man Chan was appointed CEO of AMS Public Transport Holdings Limited (HKG:77). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for AMS Public Transport Holdings
Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.
How Does Man Chan’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that AMS Public Transport Holdings Limited has a market cap of HK$256m, and is paying total annual CEO compensation of HK$4.3m. (This figure is for the year to 2018). While we always look at total compensation first, we note that the salary component is less, at HK$3.9m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO compensation in that group is HK$1.7m.
It would therefore appear that AMS Public Transport Holdings Limited pays Man Chan more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at AMS Public Transport Holdings has changed from year to year.
Is AMS Public Transport Holdings Limited Growing?
AMS Public Transport Holdings Limited has reduced its earnings per share by an average of 81% a year, over the last three years. Its revenue is up 2.5% over last year.
Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has AMS Public Transport Holdings Limited Been A Good Investment?
With a three year total loss of 11%, AMS Public Transport Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.