Ruwan Weerasooriya has been the CEO of Rewardle Holdings Limited (ASX:RXH) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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.

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How Does Ruwan Weerasooriya’s Compensation Compare With Similar Sized Companies?

Our data indicates that Rewardle Holdings Limited is worth AU$2.6m, and total annual CEO compensation is AU$164k. (This is based on the year to 2018). While we always look at total compensation first, we note that the salary component is less, at AU$150k. We took a group of companies with market capitalizations below AU$279m, and calculated the median CEO compensation to be AU$365k.

Most shareholders would consider it a positive that Ruwan Weerasooriya takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

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

Is Rewardle Holdings Limited Growing?

Over the last three years Rewardle Holdings Limited has grown its earnings per share (EPS) by an average of 55% per year (using a line of best fit). In the last year, its revenue is up 32%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.

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 Rewardle Holdings Limited Been A Good Investment?

Given the total loss of 97% over three years, many shareholders in Rewardle Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

It looks like Rewardle Holdings Limited pays its CEO less than similar sized companies. 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 would not say that Ruwan Weerasooriya is generously paid, it would be good to see an improvement in business performance before too an increase in pay.

This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Rewardle Holdings (free visualization of insider trades).

Or you might prefer examine intently this intuitive graph showing past earnings 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.