Richard Mathews became the CEO of RPMGlobal Holdings Limited (ASX:RUL) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Richard Mathews's Compensation Compare With Similar Sized Companies?
Our data indicates that RPMGlobal Holdings Limited is worth AU$168m, and total annual CEO compensation was reported as AU$610k for the year to June 2019. That's actually a decrease on the year before. It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$644k. We examined a group of similar sized companies, with market capitalizations of below AU$296m. The median CEO total compensation in that group is AU$381k.
Thus we can conclude that Richard Mathews receives more in total compensation than the median of a group of companies in the same market, and of similar size to RPMGlobal Holdings Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at RPMGlobal Holdings, below.
Is RPMGlobal Holdings Limited Growing?
On average over the last three years, RPMGlobal Holdings Limited has grown earnings per share (EPS) by 72% each year (using a line of best fit). In the last year, its revenue is up 8.3%.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has RPMGlobal Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with RPMGlobal Holdings Limited for providing a total return of 44% over three years. 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.
We compared the total CEO remuneration paid by RPMGlobal Holdings Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying RPMGlobal Holdings shares with their own money (free access).
If you want to buy a stock that is better than RPMGlobal Holdings, this free list of high return, low debt companies is a great place to look.
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