Is Vault Intelligence Limited's (ASX:VLT) CEO Paid At A Competitive Rate?

The CEO of Vault Intelligence Limited (ASX:VLT) is David Moylan. 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 Vault Intelligence

How Does David Moylan's Compensation Compare With Similar Sized Companies?

Our data indicates that Vault Intelligence Limited is worth AU$16m, and total annual CEO compensation was reported as AU$350k for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$289k. We looked at a group of companies with market capitalizations under AU$336m, and the median CEO total compensation was AU$399k.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Vault Intelligence. On a sector level, around 67% of total compensation represents salary and 33% is other remuneration. Vault Intelligence does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.

So David Moylan receives a similar amount to the median CEO pay, amongst 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 Vault Intelligence has changed over time.

ASX:VLT CEO Compensation March 27th 2020
ASX:VLT CEO Compensation March 27th 2020

Is Vault Intelligence Limited Growing?

Vault Intelligence Limited has seen earnings per share (EPS) move positively by an average of 19% a year, over the last three years (using a line of best fit). It achieved revenue growth of 22% over the last year.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Vault Intelligence Limited Been A Good Investment?

With a three year total loss of 66%, Vault Intelligence Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

David Moylan is paid around the same as most CEOs of similar size companies.

We'd say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. On another note, Vault Intelligence has 6 warning signs (and 1 which can't be ignored) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Advertisement