Yahoo Finance We Think Some Shareholders May Hesitate To Increase Urbanise.com Limited's (ASX:UBN) CEO Compensation
Under the guidance of CEO Saurabh Jain, Urbanise.com Limited (ASX:UBN) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 24 November 2021. However, some shareholders may still want to keep CEO compensation within reason.
View our latest analysis for Urbanise.com
Comparing Urbanise.com Limited's CEO Compensation With the industry
According to our data, Urbanise.com Limited has a market capitalization of AU$67m, and paid its CEO total annual compensation worth AU$701k over the year to June 2021. This means that the compensation hasn't changed much from last year. In particular, the salary of AU$386.5k, makes up a fairly large portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under AU$273m, the reported median total CEO compensation was AU$412k. This suggests that Saurabh Jain is paid more than the median for the industry. Moreover, Saurabh Jain also holds AU$408k worth of Urbanise.com stock directly under their own name.
Component | 2021 | 2020 | Proportion (2021) |
Salary | AU$386k | AU$382k | 55% |
Other | AU$315k | AU$305k | 45% |
Total Compensation | AU$701k | AU$687k | 100% |
Talking in terms of the industry, salary represented approximately 63% of total compensation out of all the companies we analyzed, while other remuneration made up 37% of the pie. Urbanise.com sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Urbanise.com Limited's Growth Numbers
Urbanise.com Limited's earnings per share (EPS) grew 93% per year over the last three years. In the last year, its revenue is up 19%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Urbanise.com Limited Been A Good Investment?
We think that the total shareholder return of 72%, over three years, would leave most Urbanise.com Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Urbanise.com that you should be aware of before investing.
Switching gears from Urbanise.com, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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