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Our Take On Brisbane Broncos Limited’s (ASX:BBL) CEO Salary

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Paul White became the CEO of Brisbane Broncos Limited (ASX:BBL) in 2011. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Brisbane Broncos

How Does Paul White’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Brisbane Broncos Limited has a market cap of AU$49m, and is paying total annual CEO compensation of AU$756k. (This number is for the twelve months until December 2018). That’s below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at AU$650k. We looked at a group of companies with market capitalizations under AU$280m, and the median CEO compensation was AU$361k.

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As you can see, Paul White is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Brisbane Broncos Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Brisbane Broncos, below.

ASX:BBL CEO Compensation, February 24th 2019
ASX:BBL CEO Compensation, February 24th 2019

Is Brisbane Broncos Limited Growing?

Over the last three years Brisbane Broncos Limited has shrunk its earnings per share by an average of 7.0% per year (measured with a line of best fit). Its revenue is up 41% over last year.

Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. 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 Brisbane Broncos Limited Been A Good Investment?

Boasting a total shareholder return of 46% over three years, Brisbane Broncos Limited has done well by shareholders. 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…

We compared total CEO remuneration at Brisbane Broncos Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Brisbane Broncos.

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

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.