Yahoo Finance Does TALI Digital Limited's (ASX:TD1) CEO Pay Matter?
Glenn Smith has been the CEO of TALI Digital Limited (ASX:TD1) since 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for TALI Digital
How Does Glenn Smith's Compensation Compare With Similar Sized Companies?
According to our data, TALI Digital Limited has a market capitalization of AU$22m, and paid its CEO total annual compensation worth AU$498k over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$250k. We examined a group of similar sized companies, with market capitalizations of below AU$308m. The median CEO total compensation in that group is AU$388k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of TALI Digital. Talking in terms of the sector, salary represented approximately 70% of total compensation out of all the companies we analysed, while other remuneration made up 30% of the pie. Our data reveals that TALI Digital allocates salary in line with the wider market.
So Glenn Smith is paid around the average of 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. The graphic below shows how CEO compensation at TALI Digital has changed from year to year.
Is TALI Digital Limited Growing?
Over the last three years TALI Digital Limited has seen earnings per share (EPS) move in a positive direction by an average of 14% per year (using a line of best fit). Its revenue is down 58% over last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has TALI Digital Limited Been A Good Investment?
TALI Digital Limited has not done too badly by shareholders, with a total return of 7.9%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Glenn Smith is paid around what is normal for the leaders of comparable 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. Taking a breather from CEO compensation, we've spotted 5 warning signs for TALI Digital (of which 1 is concerning!) you should know about in order to have a holistic understanding of the stock.
If you want to buy a stock that is better than TALI Digital, this free list of high return, low debt companies is a great place to look.
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.
