Key Insights

• Asia Cassava Resources Holdings will host its Annual General Meeting on 30th of September
• Total pay for CEO Ming Chuan Chu includes HK$1.50m salary
• The total compensation is similar to the average for the industry
• Asia Cassava Resources Holdings' EPS declined by 89% over the past three years while total shareholder loss over the past three years was 69%

The results at Asia Cassava Resources Holdings Limited (HKG:841) have been quite disappointing recently and CEO Ming Chuan Chu bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 30th of September. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

How Does Total Compensation For Ming Chuan Chu Compare With Other Companies In The Industry?

According to our data, Asia Cassava Resources Holdings Limited has a market capitalization of HK$50m, and paid its CEO total annual compensation worth HK$1.5m over the year to March 2024. This was the same as last year. Notably, the salary which is HK$1.50m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Food industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.9m. From this we gather that Ming Chuan Chu is paid around the median for CEOs in the industry. Furthermore, Ming Chuan Chu directly owns HK$31m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 73% of total compensation out of all the companies we analyzed, while other remuneration made up 27% of the pie. Asia Cassava Resources Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Asia Cassava Resources Holdings Limited's Growth Numbers

Over the last three years, Asia Cassava Resources Holdings Limited has shrunk its earnings per share by 89% per year. In the last year, its revenue is down 70%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Asia Cassava Resources Holdings Limited Been A Good Investment?

Few Asia Cassava Resources Holdings Limited shareholders would feel satisfied with the return of -69% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Asia Cassava Resources Holdings pays its CEO a majority of compensation through a salary. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 3 which shouldn't be ignored) in Asia Cassava Resources Holdings we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.