Michael Omeros became the CEO of Over the Wire Holdings Limited (ASX:OTW) in 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

Check out our latest analysis for Over the Wire Holdings

How Does Michael Omeros's Compensation Compare With Similar Sized Companies?

According to our data, Over the Wire Holdings Limited has a market capitalization of AU$232m, and paid its CEO total annual compensation worth AU$354k over the year to June 2018. We think total compensation is more important but we note that the CEO salary is lower, at AU$257k. We looked at a group of companies with market capitalizations from AU$146m to AU$585m, and the median CEO total compensation was AU$712k.

Most shareholders would consider it a positive that Michael Omeros 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.

You can see, below, how CEO compensation at Over the Wire Holdings has changed over time.

Is Over the Wire Holdings Limited Growing?

Over the Wire Holdings Limited has increased its earnings per share (EPS) by an average of 37% a year, over the last three years (using a line of best fit). Its revenue is up 49% over last year.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.

Has Over the Wire Holdings Limited Been A Good Investment?

I think that the total shareholder return of 81%, over three years, would leave most Over the Wire Holdings Limited shareholders smiling. 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...

It looks like Over the Wire Holdings Limited pays its CEO less than similar sized companies.

Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Michael Omeros deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Over the Wire Holdings (free visualization of insider trades).

If you want to buy a stock that is better than Over the Wire Holdings, 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.