Yahoo Finance A Quick Analysis On Traffic Technologies' (ASX:TTI) CEO Salary
The CEO of Traffic Technologies Limited (ASX:TTI) is Con Liosatos, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Traffic Technologies.
See our latest analysis for Traffic Technologies
How Does Total Compensation For Con Liosatos Compare With Other Companies In The Industry?
According to our data, Traffic Technologies Limited has a market capitalization of AU$17m, and paid its CEO total annual compensation worth AU$540k over the year to June 2020. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at AU$493.0k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below AU$278m, we found that the median total CEO compensation was AU$305k. Hence, we can conclude that Con Liosatos is remunerated higher than the industry median. Moreover, Con Liosatos also holds AU$1.2m worth of Traffic Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | AU$493k | AU$493k | 91% |
Other | AU$47k | AU$51k | 9% |
Total Compensation | AU$540k | AU$544k | 100% |
Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. According to our research, Traffic Technologies has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Traffic Technologies Limited's Growth
Traffic Technologies Limited has reduced its earnings per share by 101% a year over the last three years. Its revenue is down 7.8% over the previous year.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Traffic Technologies Limited Been A Good Investment?
Traffic Technologies Limited has not done too badly by shareholders, with a total return of 5.7%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
As we noted earlier, Traffic Technologies pays its CEO higher than the norm for similar-sized companies belonging to the same industry. This doesn't look great when you realize that the company has been suffering from negative EPS growth for the last three years. And shareholder returns are decent but not great. So you can understand why we do not think CEO compensation is particularly modest!
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 2 warning signs for Traffic Technologies that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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