Yahoo Finance Is The Star Entertainment Group Limited's (ASX:SGR) CEO Overpaid Relative To Its Peers?
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In 2014 Matt Bekier was appointed CEO of The Star Entertainment Group Limited (ASX:SGR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Star Entertainment Group
How Does Matt Bekier's Compensation Compare With Similar Sized Companies?
Our data indicates that The Star Entertainment Group Limited is worth AU$3.8b, and total annual CEO compensation is AU$4.9m. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$1.7m. When we examined a selection of companies with market caps ranging from AU$2.9b to AU$9.1b, we found the median CEO total compensation was AU$3.4m.
It would therefore appear that The Star Entertainment Group Limited pays Matt Bekier more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration 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.
The graphic below shows how CEO compensation at Star Entertainment Group has changed from year to year.
Is The Star Entertainment Group Limited Growing?
Over the last three years, The Star Entertainment Group Limited has not seen its earnings per share change much, though there is a positive trend. In the last year, its revenue is up 21%.
This revenue growth could really point to a brighter future. And, while modest, the earnings per share growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has The Star Entertainment Group Limited Been A Good Investment?
With a three year total loss of 19%, The Star Entertainment Group Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount The Star Entertainment Group 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.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. So you may want to check if insiders are buying Star Entertainment Group shares with their own money (free access).
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.
