Advertisement
Australia markets open in 4 hours 52 minutes
  • ALL ORDS

    7,862.30
    -147.10 (-1.84%)
     
  • AUD/USD

    0.6415
    -0.0030 (-0.46%)
     
  • ASX 200

    7,612.50
    -140.00 (-1.81%)
     
  • OIL

    85.41
    0.00 (0.00%)
     
  • GOLD

    2,409.00
    +26.00 (+1.09%)
     
  • Bitcoin AUD

    98,190.95
    +465.32 (+0.48%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     

Does AUB Group Limited’s (ASX:AUB) CEO Pay Compare Well With Peers?

Mark P. Searles became the CEO of AUB Group Limited (ASX:AUB) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for AUB Group

How Does Mark P. Searles’s Compensation Compare With Similar Sized Companies?

According to our data, AUB Group Limited has a market capitalization of AU$779m, and pays its CEO total annual compensation worth AU$1.4m. (This is based on the year to 2018). We note that’s an increase of 16% above last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$619k. When we examined a selection of companies with market caps ranging from AU$274m to AU$1.1b, we found the median CEO compensation was AU$1.1m.

ADVERTISEMENT

That means Mark P. Searles receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at AUB Group has changed from year to year.

ASX:AUB CEO Compensation December 1st 18
ASX:AUB CEO Compensation December 1st 18

Is AUB Group Limited Growing?

On average over the last three years, AUB Group Limited has grown earnings per share (EPS) by 1.9% each year. In the last year, its revenue is up 5.3%.

I’d prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise.

You might want to check this free visual report on analyst forecasts for future earnings.

Has AUB Group Limited Been A Good Investment?

Most shareholders would probably be pleased with AUB Group Limited for providing a total return of 53% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

Remuneration for Mark P. Searles is close enough to the median pay for a CEO of a similar sized company .

While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. Shareholders may want to check for free if AUB Group insiders are buying or selling shares.

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.