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Does The Citadel Group Limited's (ASX:CGL) CEO Salary Compare Well With Others?

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Darren Stanley is the CEO of The Citadel Group Limited (ASX:CGL). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

Check out our latest analysis for Citadel Group

How Does Darren Stanley's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that The Citadel Group Limited has a market cap of AU$240m, and is paying total annual CEO compensation of AU$891k. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$426k. We looked at a group of companies with market capitalizations from AU$143m to AU$572m, and the median CEO total compensation was AU$736k.

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So Darren Stanley is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Citadel Group has changed over time.

ASX:CGL CEO Compensation, July 3rd 2019
ASX:CGL CEO Compensation, July 3rd 2019

Is The Citadel Group Limited Growing?

The Citadel Group Limited has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 8.5%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.

Has The Citadel Group Limited Been A Good Investment?

With a total shareholder return of 4.9% over three years, The Citadel Group Limited has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Darren Stanley is paid around the same as most CEOs of similar size companies.

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. So you may want to check if insiders are buying Citadel Group shares with their own money (free access).

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.