Key Insights

• Asia-Pac Financial Investment will host its Annual General Meeting on 25th of September
• Total pay for CEO Kwok Kwong Ip includes HK$1.26m salary
• The total compensation is 32% less than the average for the industry
• Asia-Pac Financial Investment's three-year loss to shareholders was 60% while its EPS grew by 97% over the past three years

Performance at Asia-Pac Financial Investment Company Limited (HKG:8193) has been rather uninspiring recently and shareholders may be wondering how CEO Kwok Kwong Ip plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 25th of September. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Asia-Pac Financial Investment

How Does Total Compensation For Kwok Kwong Ip Compare With Other Companies In The Industry?

At the time of writing, our data shows that Asia-Pac Financial Investment Company Limited has a market capitalization of HK$37m, and reported total annual CEO compensation of HK$1.6m for the year to March 2023. Notably, that's an increase of 24% over the year before. We note that the salary portion, which stands at HK$1.26m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Capital Markets industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.4m. Accordingly, Asia-Pac Financial Investment pays its CEO under the industry median. Furthermore, Kwok Kwong Ip directly owns HK$497k worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 86% of total compensation represents salary and 14% is other remuneration. Asia-Pac Financial Investment is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Asia-Pac Financial Investment Company Limited's Growth Numbers

Asia-Pac Financial Investment Company Limited has seen its earnings per share (EPS) increase by 97% a year over the past three years. It saw its revenue drop 33% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in 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 Asia-Pac Financial Investment Company Limited Been A Good Investment?

The return of -60% over three years would not have pleased Asia-Pac Financial Investment Company Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. A key question may be why the fundamentals have not yet been reflected into the share price. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Asia-Pac Financial Investment you should be aware of, and 2 of them make us uncomfortable.

Important note: Asia-Pac Financial Investment is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.