Should You Worry About Azeus Systems Holdings Ltd.'s (SGX:BBW) CEO Pay Cheque?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
The CEO of Azeus Systems Holdings Ltd. (SGX:BBW) is Wan Lee. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Azeus Systems Holdings
How Does Wan Lee's Compensation Compare With Similar Sized Companies?
According to our data, Azeus Systems Holdings Ltd. has a market capitalization of S$21m, and pays its CEO total annual compensation worth HK$618k. (This figure is for the year to March 2019). Notably, the salary of HK$600k is the vast majority of the CEO compensation. 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.
A first glance this seems like a real positive for shareholders, since Wan Lee is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Azeus Systems Holdings has changed over time.
Is Azeus Systems Holdings Ltd. Growing?
Azeus Systems Holdings Ltd. has increased its earnings per share (EPS) by an average of 73% a year, over the last three years (using a line of best fit). Its revenue is up 44% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Azeus Systems Holdings Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Azeus Systems Holdings Ltd. for providing a total return of 47% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Azeus Systems Holdings Ltd. is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Wan Lee deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if Azeus Systems Holdings insiders are buying or selling shares.
If you want to buy a stock that is better than Azeus Systems Holdings, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
