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Geoff Daly became the CEO of Analytica Limited (ASX:ALT) in 2014. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Analytica

How Does Geoff Daly's Compensation Compare With Similar Sized Companies?

According to our data, Analytica Limited has a market capitalization of AU$16m, and pays its CEO total annual compensation worth AU$241k. (This is based on the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$220k. We took a group of companies with market capitalizations below AU$285m, and calculated the median CEO total compensation to be AU$358k.

Most shareholders would consider it a positive that Geoff Daly takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.

The graphic below shows how CEO compensation at Analytica has changed from year to year.

Is Analytica Limited Growing?

On average over the last three years, Analytica Limited has grown earnings per share (EPS) by 56% each year (using a line of best fit). In the last year, its revenue is up 1011%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Analytica Limited Been A Good Investment?

Since shareholders would have lost about 44% over three years, some Analytica Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Analytica Limited is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. So while we don't think, Geoff Daly is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.

When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Shareholders may want to check for free if Analytica 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.