Key Insights

• Asia-express Logistics Holdings' Annual General Meeting to take place on 23rd of August
• Total pay for CEO Yu Chan includes HK$678.0k salary
• Total compensation is 43% below industry average
• Over the past three years, Asia-express Logistics Holdings' EPS fell by 8.5% and over the past three years, the total loss to shareholders 36%

The underwhelming performance at Asia-express Logistics Holdings Limited (HKG:8620) recently has probably not pleased shareholders. The next AGM coming up on 23rd of August will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. From our analysis below, we think CEO compensation looks appropriate for now.

Comparing Asia-express Logistics Holdings Limited's CEO Compensation With The Industry

Our data indicates that Asia-express Logistics Holdings Limited has a market capitalization of HK$57m, and total annual CEO compensation was reported as HK$736k for the year to March 2024. This means that the compensation hasn't changed much from last year. Notably, the salary which is HK$678.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Logistics industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.3m. This suggests that Yu Chan is paid below the industry median.

Talking in terms of the industry, salary represented approximately 78% of total compensation out of all the companies we analyzed, while other remuneration made up 22% of the pie. Asia-express Logistics Holdings pays out 92% of remuneration in the form of a salary, significantly higher than the industry average. 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.

Asia-express Logistics Holdings Limited's Growth

Over the last three years, Asia-express Logistics Holdings Limited has shrunk its earnings per share by 8.5% per year. Its revenue is up 8.7% over the last year.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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-express Logistics Holdings Limited Been A Good Investment?

The return of -36% over three years would not have pleased Asia-express Logistics Holdings Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Asia-express Logistics Holdings that investors should be aware of in a dynamic business environment.

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.