Asia Cassava Resources Holdings Limited's (HKG:841) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Asia Cassava Resources Holdings to hold its Annual General Meeting on 26th of September
• Total pay for CEO Ming Chuan Chu includes HK$1.42m salary
• The overall pay is 53% above the industry average
• Asia Cassava Resources Holdings' EPS declined by 72% over the past three years while total shareholder loss over the past three years was 52%

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Asia Cassava Resources Holdings Limited (HKG:841) has not performed well recently and CEO Ming Chuan Chu will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 26th 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. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Asia Cassava Resources Holdings

Comparing Asia Cassava Resources Holdings Limited's CEO Compensation With The Industry

According to our data, Asia Cassava Resources Holdings Limited has a market capitalization of HK$64m, and paid its CEO total annual compensation worth HK$1.4m over the year to March 2025. That's a slight decrease of 5.4% on the prior year. Notably, the salary which is HK$1.42m, 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$941k. Hence, we can conclude that Ming Chuan Chu is remunerated higher than the industry median. Furthermore, Ming Chuan Chu directly owns HK$39m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 82% of total compensation represents salary and 18% is other remuneration. Asia Cassava Resources Holdings has gone down a largely traditional route, paying Ming Chuan Chu a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Asia Cassava Resources Holdings Limited's Growth

Over the last three years, Asia Cassava Resources Holdings Limited has shrunk its earnings per share by 72% per year. Its revenue is down 18% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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?

The return of -52% over three years would not have pleased Asia Cassava Resources Holdings Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Asia Cassava Resources Holdings pays its CEO a majority of compensation through a salary. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for Asia Cassava Resources Holdings (of which 3 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: Asia Cassava Resources Holdings 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.