James Campbell has been the CEO of Patrys Limited (ASX:PAB) since 2015. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does James Campbell's Compensation Compare With Similar Sized Companies?
According to our data, Patrys Limited has a market capitalization of AU$21m, and paid its CEO total annual compensation worth AU$504k over the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$305k. We took a group of companies with market capitalizations below AU$290m, and calculated the median CEO total compensation to be AU$380k.
It would therefore appear that Patrys Limited pays James Campbell more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Patrys has changed over time.
Is Patrys Limited Growing?
Patrys Limited has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). Its revenue is up 62% over last year.
This demonstrates that the company has been improving recently. A good result. 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 Patrys Limited Been A Good Investment?
I think that the total shareholder return of 196%, over three years, would leave most Patrys Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount Patrys Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Patrys (free visualization of insider trades).
If you want to buy a stock that is better than Patrys, this free list of high return, low debt companies is a great place to look.
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