Yahoo Finance Does Acrux Limited's (ASX:ACR) CEO Salary Compare Well With Others?
Michael Kotsanis became the CEO of Acrux Limited (ASX:ACR) in 2014. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Acrux
How Does Michael Kotsanis's Compensation Compare With Similar Sized Companies?
Our data indicates that Acrux Limited is worth AU$32m, and total annual CEO compensation is AU$521k. (This number is for the twelve months until June 2019). That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at AU$451k. We looked at a group of companies with market capitalizations under AU$290m, and the median CEO total compensation was AU$368k.
As you can see, Michael Kotsanis is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Acrux Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Acrux, below.
Is Acrux Limited Growing?
On average over the last three years, Acrux Limited has shrunk earnings per share by 86% each year (measured with a line of best fit). Its revenue is up 54% over last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Acrux Limited Been A Good Investment?
Since shareholders would have lost about 49% over three years, some Acrux 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 compared the total CEO remuneration paid by Acrux Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Shareholders may want to check for free if Acrux insiders are buying or selling shares.
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.
