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What Did AJ Lucas Group Limited’s (ASX:AJL) CEO Take Home Last Year?

Brett Tredinnick is the CEO of AJ Lucas Group Limited (ASX:AJL). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for AJ Lucas Group

How Does Brett Tredinnick’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that AJ Lucas Group Limited has a market cap of AU$83m, and is paying total annual CEO compensation of AU$700k. (This figure is for the year to June 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$421k. We examined a group of similar sized companies, with market capitalizations of below AU$282m. The median CEO total compensation in that group is AU$354k.

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As you can see, Brett Tredinnick is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean AJ Lucas Group 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, below, how CEO compensation at AJ Lucas Group has changed over time.

ASX:AJL CEO Compensation, March 19th 2019
ASX:AJL CEO Compensation, March 19th 2019

Is AJ Lucas Group Limited Growing?

On average over the last three years, AJ Lucas Group Limited has grown earnings per share (EPS) by 67% each year (using a line of best fit). Its revenue is up 49% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has AJ Lucas Group Limited Been A Good Investment?

Since shareholders would have lost about 43% over three years, some AJ Lucas Group 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…

We examined the amount AJ Lucas Group 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 the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if AJ Lucas Group insiders are buying or selling shares.

If you want to buy a stock that is better than AJ Lucas Group, this free list of high return, low debt companies is a great place to look.

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.