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Peter Davey has been the CEO of Clover Corporation Limited (ASX:CLV) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Peter Davey's Compensation Compare With Similar Sized Companies?
According to our data, Clover Corporation Limited has a market capitalization of AU$339m, and pays its CEO total annual compensation worth AU$1.2m. (This is based on the year to July 2018). While we always look at total compensation first, we note that the salary component is less, at AU$394k. When we examined a selection of companies with market caps ranging from AU$144m to AU$578m, we found the median CEO total compensation was AU$748k.
Thus we can conclude that Peter Davey receives more in total compensation than the median of a group of companies in the same market, and of similar size to Clover Corporation Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Clover has changed over time.
Is Clover Corporation Limited Growing?
Clover Corporation Limited has increased its earnings per share (EPS) by an average of 65% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 11%.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Clover Corporation Limited Been A Good Investment?
Boasting a total shareholder return of 442% over three years, Clover Corporation Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount Clover Corporation Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Clover shares (free trial).
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.
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 email@example.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.