Yahoo Finance Increases to CEO Compensation Might Be Put On Hold For Now at CardieX Limited (ASX:CDX)
Performance at CardieX Limited (ASX:CDX) has been reasonably good and CEO Craig Cooper has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 15 December 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for CardieX
Comparing CardieX Limited's CEO Compensation With the industry
Our data indicates that CardieX Limited has a market capitalization of AU$52m, and total annual CEO compensation was reported as AU$1.1m for the year to June 2021. We note that's an increase of 18% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$529k.
On comparing similar-sized companies in the industry with market capitalizations below AU$279m, we found that the median total CEO compensation was AU$603k. Hence, we can conclude that Craig Cooper is remunerated higher than the industry median.
Component | 2021 | 2020 | Proportion (2021) |
Salary | AU$529k | AU$447k | 49% |
Other | AU$546k | AU$464k | 51% |
Total Compensation | AU$1.1m | AU$911k | 100% |
Talking in terms of the industry, salary represented approximately 65% of total compensation out of all the companies we analyzed, while other remuneration made up 35% of the pie. In CardieX's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
CardieX Limited's Growth
Over the past three years, CardieX Limited has seen its earnings per share (EPS) grow by 21% per year. In the last year, its revenue is up 16%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has CardieX Limited Been A Good Investment?
We think that the total shareholder return of 58%, over three years, would leave most CardieX Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 5 warning signs for CardieX (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from CardieX, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
