Is Spring FG Limited's (ASX:SFL) CEO Overpaid Relative To Its Peers?

The CEO of Spring FG Limited (ASX:SFL) is Keith Cullen. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.

See our latest analysis for Spring FG

How Does Keith Cullen's Compensation Compare With Similar Sized Companies?

Our data indicates that Spring FG Limited is worth AU$4.3m, and total annual CEO compensation is AU$309k. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$274k. We took a group of companies with market capitalizations below AU$280m, and calculated the median CEO total compensation to be AU$354k.

So Keith Cullen is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Spring FG has changed over time.

Is Spring FG Limited Growing?

Spring FG Limited has reduced its earnings per share by an average of 99% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 47%.

The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Spring FG Limited Been A Good Investment?

Since shareholders would have lost about 80% over three years, some Spring FG Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Keith Cullen is close enough to the median pay for a CEO of a similar sized company .

The company cannot boast particularly strong per share growth. And shareholder returns have been disappointing over the last three years. So suffice it to say we don't think the compensation is modest. So you may want to check if insiders are buying Spring FG shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.