In 2014 Ruwan Weerasooriya was appointed CEO of Rewardle Holdings Limited (ASX:RXH). First, this article will compare CEO compensation with compensation at similar sized companies. 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.

View our latest analysis for Rewardle Holdings

How Does Ruwan Weerasooriya's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Rewardle Holdings Limited has a market cap of AU$2.6m, and reported total annual CEO compensation of AU$172k for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$88k. We examined a group of similar sized companies, with market capitalizations of below AU$291m. The median CEO total compensation in that group is AU$380k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.

The graphic below shows how CEO compensation at Rewardle Holdings has changed from year to year.

Is Rewardle Holdings Limited Growing?

Over the last three years Rewardle Holdings Limited has grown its earnings per share (EPS) by an average of 77% per year (using a line of best fit). In the last year, its revenue is down 16%.

This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. 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 Rewardle Holdings Limited Been A Good Investment?

Since shareholders would have lost about 89% over three years, some Rewardle Holdings Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

It looks like Rewardle Holdings Limited pays its CEO less than similar sized companies.

Many would consider this to indicate that the pay is modest since the business is growing. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we would not say that Ruwan Weerasooriya is generously paid, it would be good to see an improvement in business performance before too an increase in pay. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. So you may want to check if insiders are buying Rewardle Holdings shares with their own money (free access).

If you want to buy a stock that is better than Rewardle 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.