The underwhelming share price performance of Aeso Holding Limited (HKG:8341) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 30 September 2022. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Aeso Holding

How Does Total Compensation For Siu Chung Chan Compare With Other Companies In The Industry?

According to our data, Aeso Holding Limited has a market capitalization of HK$32m, and paid its CEO total annual compensation worth HK$2.7m over the year to March 2022. That's just a smallish increase of 4.1% on last year. In particular, the salary of HK$2.18m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.9m. Accordingly, our analysis reveals that Aeso Holding Limited pays Siu Chung Chan north of the industry median. Moreover, Siu Chung Chan also holds HK$4.3m worth of Aeso Holding stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. Although there is a difference in how total compensation is set, Aeso Holding more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Aeso Holding Limited's Growth

Aeso Holding Limited has seen its earnings per share (EPS) increase by 71% a year over the past three years. It achieved revenue growth of 63% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Aeso Holding Limited Been A Good Investment?

Few Aeso Holding Limited shareholders would feel satisfied with the return of -95% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

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 be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Aeso Holding (2 are a bit concerning!) that you should be aware of before investing here.

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.