Siu Chung Chan became the CEO of Aeso Holding Limited (HKG:8341) in 2016. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Aeso Holding

How Does Siu Chung Chan's Compensation Compare With Similar Sized Companies?

Our data indicates that Aeso Holding Limited is worth HK$540m, and total annual CEO compensation was reported as HK$2.6m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$2.2m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.8m.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Aeso Holding stands. On a sector level, around 80% of total compensation represents salary and 20% is other remuneration. Aeso Holding is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation

As you can see, Siu Chung Chan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Aeso Holding Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. You can see a visual representation of the CEO compensation at Aeso Holding, below.

Is Aeso Holding Limited Growing?

On average over the last three years, Aeso Holding Limited has seen earnings per share (EPS) move in a favourable direction by 36% each year (using a line of best fit). It achieved revenue growth of 127% over the last year.

This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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?

With a three year total loss of 93%, Aeso Holding Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared total CEO remuneration at Aeso Holding Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is moving in the right direction, we'd say shareholders would want better returns before the CEO is paid much more. Shifting gears from CEO pay for a second, we've spotted 5 warning signs for Aeso Holding you should be aware of, and 2 of them make us uncomfortable.

Important note: Aeso Holding may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

If you spot an error that warrants correction, please contact the editor at 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.