Our Take On Huon Aquaculture Group Limited's (ASX:HUO) CEO Salary

Peter Bender is the CEO of Huon Aquaculture Group Limited (ASX:HUO). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Huon Aquaculture Group

How Does Peter Bender's Compensation Compare With Similar Sized Companies?

Our data indicates that Huon Aquaculture Group Limited is worth AU$401m, and total annual CEO compensation was reported as AU$921k for the year to June 2019. That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at AU$532k. We looked at a group of companies with market capitalizations from AU$147m to AU$587m, and the median CEO total compensation was AU$682k.

It would therefore appear that Huon Aquaculture Group Limited pays Peter Bender more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration 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 a visual representation of the CEO compensation at Huon Aquaculture Group, below.

ASX:HUO CEO Compensation, November 19th 2019
ASX:HUO CEO Compensation, November 19th 2019

Is Huon Aquaculture Group Limited Growing?

Over the last three years Huon Aquaculture Group Limited has shrunk its earnings per share by an average of 8.1% per year (measured with a line of best fit). Its revenue is down 11% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has Huon Aquaculture Group Limited Been A Good Investment?

Boasting a total shareholder return of 40% over three years, Huon Aquaculture Group 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...

We examined the amount Huon Aquaculture Group 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.

Earnings per share have not grown in three years, and the revenue growth fails to impress us. But clearly there are some positives, because investors have done well over the same time frame. So on this analysis we'd stop short of criticizing the level of CEO compensation. Shareholders may want to check for free if Huon Aquaculture Group insiders are buying or selling shares.

Important note: Huon Aquaculture Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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 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.

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