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How Much is Hansen Technologies Ltd's (ASX:HSN) CEO Getting Paid?

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Andrew Hansen became the CEO of Hansen Technologies Ltd (ASX:HSN) in 1990. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Hansen Technologies

How Does Andrew Hansen's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Hansen Technologies Ltd has a market cap of AU$756m, and is paying total annual CEO compensation of AU$1.7m. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$826k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$291m to AU$1.2b. The median total CEO compensation was AU$1.0m.

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Thus we can conclude that Andrew Hansen receives more in total compensation than the median of a group of companies in the same market, and of similar size to Hansen Technologies Ltd. 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 a visual representation of the CEO compensation at Hansen Technologies, below.

ASX:HSN CEO Compensation, June 17th 2019
ASX:HSN CEO Compensation, June 17th 2019

Is Hansen Technologies Ltd Growing?

Hansen Technologies Ltd saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. It achieved revenue growth of 9.0% over the last year.

I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.

Has Hansen Technologies Ltd Been A Good Investment?

Hansen Technologies Ltd has not done too badly by shareholders, with a total return of 8.8%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

We compared total CEO remuneration at Hansen Technologies Ltd with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. Considering this, we wouldn't want to see any big pay rises, although we'd stop short of calling the CEO compensation unfair. Whatever your view on compensation, you might want to check if insiders are buying or selling Hansen Technologies shares (free trial).

If you want to buy a stock that is better than Hansen Technologies, 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.