Yahoo Finance Is Saunders International Limited's (ASX:SND) CEO Being Overpaid?
In 2015 Mark Benson was appointed CEO of Saunders International Limited (ASX:SND). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Saunders International
How Does Mark Benson's Compensation Compare With Similar Sized Companies?
According to our data, Saunders International Limited has a market capitalization of AU$32m, and pays its CEO total annual compensation worth AU$636k. (This figure is for the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$490k. We looked at a group of companies with market capitalizations under AU$295m, and the median CEO total compensation was AU$355k.
As you can see, Mark Benson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Saunders International Limited is paying too much. 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 Saunders International, below.
Is Saunders International Limited Growing?
On average over the last three years, Saunders International Limited has shrunk earnings per share by 97% each year (measured with a line of best fit). Its revenue is down -13% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Saunders International Limited Been A Good Investment?
Since shareholders would have lost about 35% over three years, some Saunders International Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount Saunders International Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Arguably worse, investors are without a positive return for the last three years. In our opinion the CEO might be paid too generously! Shareholders may want to check for free if Saunders International insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
