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In 2016 Rod Sherwood was appointed CEO of CV Check Ltd (ASX:CV1). 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 process should give us an idea about how appropriately the CEO is paid.
How Does Rod Sherwood's Compensation Compare With Similar Sized Companies?
Our data indicates that CV Check Ltd is worth AU$51m, and total annual CEO compensation is AU$331k. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$272k. We examined a group of similar sized companies, with market capitalizations of below AU$289m. The median CEO total compensation in that group is AU$358k.
So Rod Sherwood receives a similar amount to the median CEO pay, amongst the companies we looked at. 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.
You can see a visual representation of the CEO compensation at CV Check, below.
Is CV Check Ltd Growing?
On average over the last three years, CV Check Ltd has grown earnings per share (EPS) by 72% each year (using a line of best fit). Its revenue is up 14% over last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has CV Check Ltd Been A Good Investment?
CV Check Ltd has not done too badly by shareholders, with a total return of 0.7%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Rod Sherwood is paid around the same as most CEOs of similar size companies.
The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling CV Check 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.
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 firstname.lastname@example.org. 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.