Yahoo Finance How Should Investors Feel About CAP-XX Limited's (LON:CPX) CEO Pay?
The CEO of CAP-XX Limited (LON:CPX) is Anthony Kongats. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Anthony Kongats's Compensation Compare With Similar Sized Companies?
According to our data, CAP-XX Limited has a market capitalization of UK£13m, and pays its CEO total annual compensation worth AU$599k. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$322k. We looked at a group of companies with market capitalizations under AU$291m, and the median CEO total compensation was AU$458k.
Thus we can conclude that Anthony Kongats receives more in total compensation than the median of a group of companies in the same market, and of similar size to CAP-XX Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at CAP-XX has changed over time.
Is CAP-XX Limited Growing?
On average over the last three years, CAP-XX Limited has shrunk earnings per share by 2.3% each year (measured with a line of best fit). It achieved revenue growth of 14% over the last year.
The lack of earnings per share growth in the last three years is unimpressive. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has CAP-XX Limited Been A Good Investment?
Given the total loss of 22% over three years, many shareholders in CAP-XX Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount CAP-XX Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Arguably worse, investors are without a positive return for the last three years. In our opinion the CEO might be paid too generously! Shareholders may want to check for free if CAP-XX insiders are buying or selling shares.
If you want to buy a stock that is better than CAP-XX, 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.
