Does HiTech Group Australia Limited's (ASX:HIT) CEO Pay Reflect Performance?

Simply Wall St

Elias Hazouri became the CEO of HiTech Group Australia Limited (ASX:HIT) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.

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View our latest analysis for HiTech Group Australia

How Does Elias Hazouri's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that HiTech Group Australia Limited has a market cap of AU$37m, and is paying total annual CEO compensation of AU$374k. (This number is for the twelve months until June 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$374k. We took a group of companies with market capitalizations below AU$289m, and calculated the median CEO total compensation to be AU$355k.

So Elias Hazouri receives a similar amount to the median CEO pay, amongst 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, below, how CEO compensation at HiTech Group Australia has changed over time.

ASX:HIT CEO Compensation, May 26th 2019
ASX:HIT CEO Compensation, May 26th 2019

Is HiTech Group Australia Limited Growing?

Over the last three years HiTech Group Australia Limited has grown its earnings per share (EPS) by an average of 7.1% per year (using a line of best fit). It achieved revenue growth of 9.1% over the last year.

I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has HiTech Group Australia Limited Been A Good Investment?

Boasting a total shareholder return of 412% over three years, HiTech Group Australia Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Elias Hazouri is paid around the same as most CEOs of similar size companies.

While the growth could be better, the shareholder returns are clearly good. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. Shareholders may want to check for free if HiTech Group Australia insiders are buying or selling shares.

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.