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Does Tassal Group Limited's (ASX:TGR) CEO Pay Reflect Performance?

Mark Ryan became the CEO of Tassal Group Limited (ASX:TGR) in 2003. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Tassal Group

How Does Mark Ryan's Compensation Compare With Similar Sized Companies?

According to our data, Tassal Group Limited has a market capitalization of AU$867m, and paid its CEO total annual compensation worth AU$1.2m over the year to June 2019. That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at AU$719k. When we examined a selection of companies with market caps ranging from AU$291m to AU$1.2b, we found the median CEO total compensation was AU$1.0m.

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That means Mark Ryan receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Tassal Group has changed from year to year.

ASX:TGR CEO Compensation, December 16th 2019
ASX:TGR CEO Compensation, December 16th 2019

Is Tassal Group Limited Growing?

Over the last three years, Tassal Group Limited has not seen its earnings per share change much, though they have deteriorated slightly, according to a line of best fit. It achieved revenue growth of 16% over the last year.

Unfortunately there is a complete lack of earnings per share improvement, over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has Tassal Group Limited Been A Good Investment?

With a total shareholder return of 17% over three years, Tassal Group Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Remuneration for Mark Ryan is close enough to the median pay for a CEO of a similar sized company .

We feel that earnings per share have been a bit disappointing, but and we don't think the total returns are amazing. We wouldn't say the CEO pay is too high, but we'd venture the company should look to improve its business metrics (and share price) before paying any more. Shareholders may want to check for free if Tassal Group insiders are buying or selling shares.

Important note: Tassal 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.

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.