Yahoo Finance Most Shareholders Will Probably Agree With Vysarn Limited's (ASX:VYS) CEO Compensation
Under the guidance of CEO James Clement, Vysarn Limited (ASX:VYS) has performed reasonably well recently. As shareholders go into the upcoming AGM on 24 November 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.
View our latest analysis for Vysarn
How Does Total Compensation For James Clement Compare With Other Companies In The Industry?
At the time of writing, our data shows that Vysarn Limited has a market capitalization of AU$32m, and reported total annual CEO compensation of AU$469k for the year to June 2022. Notably, that's an increase of 19% over the year before. Notably, the salary which is AU$293.4k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under AU$296m, the reported median total CEO compensation was AU$366k. This suggests that Vysarn remunerates its CEO largely in line with the industry average. Furthermore, James Clement directly owns AU$1.2m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2022 | 2021 | Proportion (2022) |
Salary | AU$293k | AU$310k | 63% |
Other | AU$176k | AU$85k | 37% |
Total Compensation | AU$469k | AU$395k | 100% |
Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. Although there is a difference in how total compensation is set, Vysarn more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Vysarn Limited's Growth Numbers
Vysarn Limited has reduced its earnings per share by 18% a year over the last three years. Its revenue is up 79% over the last year.
Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Vysarn Limited Been A Good Investment?
Most shareholders would probably be pleased with Vysarn Limited for providing a total return of 44% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Still, we think that until shareholders see an improvement in EPS growth, they may find it hard to justify a pay rise for the CEO.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Vysarn that you should be aware of before investing.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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