Yahoo Finance Is Baby Bunting Group Limited's (ASX:BBN) CEO Pay Fair?
Matt Spencer became the CEO of Baby Bunting Group Limited (ASX:BBN) in 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Baby Bunting Group
How Does Matt Spencer's Compensation Compare With Similar Sized Companies?
According to our data, Baby Bunting Group Limited has a market capitalization of AU$458m, and paid its CEO total annual compensation worth AU$1.2m over the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$520k. We examined companies with market caps from AU$298m to AU$1.2b, and discovered that the median CEO total compensation of that group was AU$1.1m.
So Matt Spencer is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Baby Bunting Group has changed over time.
Is Baby Bunting Group Limited Growing?
Baby Bunting Group Limited saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. In the last year, its revenue is up 21%.
I would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. It could be important to check this free visual depiction of what analysts expect for the future.
Has Baby Bunting Group Limited Been A Good Investment?
Most shareholders would probably be pleased with Baby Bunting Group Limited for providing a total return of 56% over three years. 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.
In Summary...
Matt Spencer is paid around what is normal the leaders of comparable size companies.
While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Baby Bunting Group.
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.
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.
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