Yahoo Finance Is Legend Corporation Limited's (ASX:LGD) CEO Salary Justified?
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Brad Dowe has been the CEO of Legend Corporation Limited (ASX:LGD) since 2002. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Legend
How Does Brad Dowe's Compensation Compare With Similar Sized Companies?
According to our data, Legend Corporation Limited has a market capitalization of AU$64m, and pays its CEO total annual compensation worth AU$445k. (This is based on the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$398k. We examined a group of similar sized companies, with market capitalizations of below AU$284m. The median CEO total compensation in that group is AU$354k.
That means Brad Dowe receives fairly typical remuneration for the CEO of a company that size. 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.
You can see a visual representation of the CEO compensation at Legend, below.
Is Legend Corporation Limited Growing?
On average over the last three years, Legend Corporation Limited has grown earnings per share (EPS) by 11% each year (using a line of best fit). In the last year, its revenue is up 36%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Legend Corporation Limited Been A Good Investment?
Most shareholders would probably be pleased with Legend Corporation Limited for providing a total return of 74% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Brad Dowe is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Legend insiders are buying or selling shares.
Important note: Legend 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.
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.
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. Thank you for reading.
