Does Harvey Norman Holdings Limited’s (ASX:HVN) CEO Pay Compare Well With Peers?
Katie Page became the CEO of Harvey Norman Holdings Limited (ASX:HVN) in 1999. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Harvey Norman Holdings
How Does Katie Page’s Compensation Compare With Similar Sized Companies?
According to our data, Harvey Norman Holdings Limited has a market capitalization of AU$3.9b, and pays its CEO total annual compensation worth AU$3.3m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at AU$2.1m. When we examined a selection of companies with market caps ranging from AU$2.8b to AU$8.9b, we found the median CEO compensation was AU$3.8m.
So Katie Page is paid around the average of the companies we looked at. 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 Harvey Norman Holdings, below.
Is Harvey Norman Holdings Limited Growing?
Harvey Norman Holdings Limited has increased its earnings per share (EPS) by an average of 12% a year, over the last three years It achieved revenue growth of 8.8% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Harvey Norman Holdings Limited Been A Good Investment?
Harvey Norman Holdings Limited has generated a total shareholder return of 3.0% over three years, so most shareholders wouldn’t be too disappointed. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
Katie Page is paid around what is normal the leaders of comparable size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. Shareholders may want to check for free if Harvey Norman Holdings insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
