Yahoo Finance Does Coventry Group Ltd's (ASX:CYG) CEO Pay Reflect Performance?
Robert Bulluss has been the CEO of Coventry Group Ltd (ASX:CYG) since 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
Check out our latest analysis for Coventry Group
How Does Robert Bulluss's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Coventry Group Ltd has a market cap of AU$101m, and reported total annual CEO compensation of AU$447k for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$379k. We looked at a group of companies with market capitalizations under AU$285m, and the median CEO total compensation was AU$379k.
That means Robert Bulluss receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Coventry Group has changed from year to year.
Is Coventry Group Ltd Growing?
Over the last three years Coventry Group Ltd has grown its earnings per share (EPS) by an average of 35% per year (using a line of best fit). Its revenue is up 20% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Coventry Group Ltd Been A Good Investment?
I think that the total shareholder return of 35%, over three years, would leave most Coventry Group Ltd shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Robert Bulluss is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Coventry Group shares (free trial).
Important note: Coventry Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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