Here's What We Think About Total Brain Limited's (ASX:TTB) CEO Pay
Louis Gagnon has been the CEO of Total Brain Limited (ASX:TTB) since 2017. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Total Brain
How Does Louis Gagnon's Compensation Compare With Similar Sized Companies?
According to our data, Total Brain Limited has a market capitalization of AU$78m, and paid its CEO total annual compensation worth AU$708k over the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$419k. We took a group of companies with market capitalizations below AU$292m, and calculated the median CEO total compensation to be AU$381k.
Thus we can conclude that Louis Gagnon receives more in total compensation than the median of a group of companies in the same market, and of similar size to Total Brain Limited. 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, below, how CEO compensation at Total Brain has changed over time.
Is Total Brain Limited Growing?
Over the last three years Total Brain Limited has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). Revenue was pretty flat on last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Total Brain Limited Been A Good Investment?
Given the total loss of 24% over three years, many shareholders in Total Brain Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Total Brain Limited 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Total Brain.
If you want to buy a stock that is better than Total Brain, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
