Maurice James is the CEO of Qube Holdings Limited (ASX:QUB). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
How Does Maurice James's Compensation Compare With Similar Sized Companies?
According to our data, Qube Holdings Limited has a market capitalization of AU$5.2b, and paid its CEO total annual compensation worth AU$4.2m over the year to June 2019. That's a fairly small increase of 2.5% on year before. While we always look at total compensation first, we note that the salary component is less, at AU$1.3m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$2.9b to AU$9.3b. The median total CEO compensation was AU$3.3m.
So Maurice James receives a similar amount to the median CEO pay, amongst the companies we looked at. 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.
The graphic below shows how CEO compensation at Qube Holdings has changed from year to year.
Is Qube Holdings Limited Growing?
Over the last three years Qube Holdings Limited has grown its earnings per share (EPS) by an average of 32% per year (using a line of best fit). In the last year, its revenue is up 4.2%.
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. It could be important to check this free visual depiction of what analysts expect for the future.
Has Qube Holdings Limited Been A Good Investment?
I think that the total shareholder return of 45%, over three years, would leave most Qube Holdings Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Maurice James is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Qube Holdings (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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