Does Appen Limited's (ASX:APX) CEO Pay Matter?
Mark Ronald Brayan has been the CEO of Appen Limited (ASX:APX) since 2015. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
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Check out our latest analysis for Appen
How Does Mark Ronald Brayan's Compensation Compare With Similar Sized Companies?
Our data indicates that Appen Limited is worth AU$3.0b, and total annual CEO compensation is AU$1.7m. (This is based on the year to December 2018). We note that's an increase of 86% above last year. We think total compensation is more important but we note that the CEO salary is lower, at AU$485k. When we examined a selection of companies with market caps ranging from AU$1.4b to AU$4.6b, we found the median CEO total compensation was AU$2.3m.
That means Mark Ronald Brayan receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Appen, below.
Is Appen Limited Growing?
On average over the last three years, Appen Limited has grown earnings per share (EPS) by 46% each year (using a line of best fit). It achieved revenue growth of 119% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Appen Limited Been A Good Investment?
Boasting a total shareholder return of 1193% over three years, Appen Limited has done well by shareholders. 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...
Mark Ronald Brayan is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Appen.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
