Yahoo Finance How Should Investors Feel About Cromwell Property Group’s (ASX:CMW) CEO Pay?
Paul Weightman has been the CEO of Cromwell Property Group (ASX:CMW) since 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Cromwell Property Group
How Does Paul Weightman’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Cromwell Property Group has a market cap of AU$2.2b, and is paying total annual CEO compensation of AU$2.9m. (This number is for the twelve months until 2018). That’s actually a decrease on the year before. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$1.6m. We examined companies with market caps from AU$1.4b to AU$4.5b, and discovered that the median CEO compensation of that group was AU$2.5m.
That means Paul Weightman 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.
You can see a visual representation of the CEO compensation at Cromwell Property Group, below.
Is Cromwell Property Group Growing?
Over the last three years Cromwell Property Group has shrunk its earnings per share by an average of 1.2% per year. It achieved revenue growth of 31% over the last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Cromwell Property Group Been A Good Investment?
Cromwell Property Group has served shareholders reasonably well, with a total return of 22% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
Remuneration for Paul Weightman 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. Shareholders may want to check for free if Cromwell Property Group insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
