Yahoo Finance How Should Investors Feel About CardieX's (ASX:CDX) CEO Remuneration?
Craig Cooper has been the CEO of CardieX Limited (ASX:CDX) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for CardieX
How Does Total Compensation For Craig Cooper Compare With Other Companies In The Industry?
Our data indicates that CardieX Limited has a market capitalization of AU$42m, and total annual CEO compensation was reported as AU$911k for the year to June 2020. That's a fairly small increase of 7.1% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$447k.
In comparison with other companies in the industry with market capitalizations under AU$273m, the reported median total CEO compensation was AU$601k. Hence, we can conclude that Craig Cooper is remunerated higher than the industry median.
Component | 2020 | 2019 | Proportion (2020) |
Salary | AU$447k | AU$419k | 49% |
Other | AU$464k | AU$432k | 51% |
Total Compensation | AU$911k | AU$851k | 100% |
On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. CardieX pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
CardieX Limited's Growth
Over the past three years, CardieX Limited has seen its earnings per share (EPS) grow by 53% per year. It achieved revenue growth of 7.7% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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?
Boasting a total shareholder return of 114% over three years, CardieX Limited has done well by shareholders. 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.
In Summary...
As we noted earlier, CardieX pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, CardieX has produced strong EPS growth and shareholder returns over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. And given most shareholders are probably very happy with recent returns, they might even think that Craig deserves a raise!
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for CardieX that you should be aware of before investing.
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.
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. 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.
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