Yahoo Finance Does IRESS Limited's (ASX:IRE) CEO Pay Compare Well With Peers?
Andrew Walsh became the CEO of IRESS Limited (ASX:IRE) in 2009. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for IRESS
How Does Andrew Walsh's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that IRESS Limited has a market cap of AU$2.3b, and is paying total annual CEO compensation of AU$2.5m. (This figure is for the year to December 2018). That's just a smallish increase of 6.7% on last year. We think total compensation is more important but we note that the CEO salary is lower, at AU$1.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$1.4b to AU$4.5b. The median total CEO compensation was AU$2.4m.
So Andrew Walsh 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.
The graphic below shows how CEO compensation at IRESS has changed from year to year.
Is IRESS Limited Growing?
Over the last three years, IRESS Limited has not seen its earnings per share change much, though there is a positive trend. In the last year, its revenue is up 8.1%.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Shareholders might be interested in this free visualization of analyst forecasts.
Has IRESS Limited Been A Good Investment?
With a total shareholder return of 33% over three years, IRESS Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Remuneration for Andrew Walsh is close enough to the median pay for a CEO of a similar sized company .
We think many would like to see better growth. While there is room for improvement, we haven't seen evidence to suggest the pay is too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling IRESS shares (free trial).
Important note: IRESS 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.
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.
