Yahoo Finance Is Super Retail Group Limited’s (ASX:SUL) CEO Salary Justified?
In 2006 Peter Birtles was appointed CEO of Super Retail Group Limited (ASX:SUL). 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 – 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.
See our latest analysis for Super Retail Group
How Does Peter Birtles’s Compensation Compare With Similar Sized Companies?
Our data indicates that Super Retail Group Limited is worth AU$1.5b, and total annual CEO compensation is AU$2m. That’s below the compensation, last year. When we examined a selection of companies with market caps ranging from AU$562m to AU$2.2b, we found the median CEO compensation was AU$2m.
That means Peter Birtles receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Super Retail Group has changed from year to year.
Is Super Retail Group Limited Growing?
Over the last three years Super Retail Group Limited has grown its earnings per share (EPS) by an average of 12% per year. Its revenue is up 4.2% over last year.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Super Retail Group Limited Been A Good Investment?
With a three year total loss of 13%, Super Retail Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
Peter Birtles is paid around the same as most CEOs of similar size companies.
We’d say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. So you may want to check if insiders are buying Super Retail Group Limited shares with their own money (free access).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
