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In 2014 Bob Vassie was appointed CEO of St Barbara Limited (ASX:SBM). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for St Barbara

How Does Bob Vassie’s Compensation Compare With Similar Sized Companies?

Our data indicates that St Barbara Limited is worth AU$2.5b, and total annual CEO compensation is AU$2.3m. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$823k. We examined companies with market caps from AU$1.4b to AU$4.5b, and discovered that the median CEO compensation of that group was AU$2.5m.

That means Bob Vassie receives fairly typical remuneration for the CEO of a company that size. 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 St Barbara has changed over time.

Is St Barbara Limited Growing?

On average over the last three years, St Barbara Limited has grown earnings per share (EPS) by 14% each year (using a line of best fit). In the last year, its revenue is up 4.6%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.

Has St Barbara Limited Been A Good Investment?

Boasting a total shareholder return of 162% over three years, St Barbara Limited has done well by shareholders. 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…

Bob Vassie is paid around the same as most CEOs of similar size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at St Barbara.

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.