Yahoo Finance Does Chant West Holdings Limited's (ASX:CWL) CEO Salary Reflect Performance?
The CEO of Chant West Holdings Limited (ASX:CWL) is Brendan Burwood. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Chant West Holdings
How Does Brendan Burwood's Compensation Compare With Similar Sized Companies?
According to our data, Chant West Holdings Limited has a market capitalization of AU$8.2m, and paid its CEO total annual compensation worth AU$506k over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$341k. We looked at a group of companies with market capitalizations under AU$299m, and the median CEO total compensation was AU$381k.
Thus we can conclude that Brendan Burwood receives more in total compensation than the median of a group of companies in the same market, and of similar size to Chant West Holdings Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Chant West Holdings has changed over time.
Is Chant West Holdings Limited Growing?
On average over the last three years, Chant West Holdings Limited has grown earnings per share (EPS) by 31% each year (using a line of best fit). It saw its revenue drop 7.1% over the last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Chant West Holdings Limited Been A Good Investment?
With a three year total loss of 55%, Chant West Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount Chant West Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling Chant West Holdings shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
