Mike Pivac has been the CEO of FBR Limited (ASX:FBR) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 Mike Pivac's Compensation Compare With Similar Sized Companies?
Our data indicates that FBR Limited is worth AU$83m, and total annual CEO compensation was reported as AU$617k for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$375k. We looked at a group of companies with market capitalizations under AU$287m, and the median CEO total compensation was AU$381k.
Thus we can conclude that Mike Pivac receives more in total compensation than the median of a group of companies in the same market, and of similar size to FBR Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at FBR, below.
Is FBR Limited Growing?
Over the last three years FBR Limited has shrunk its earnings per share by an average of 2.5% per year (measured with a line of best fit). It achieved revenue growth of 107% over the last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has FBR Limited Been A Good Investment?
With a three year total loss of 52%, FBR Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at FBR Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. So you may want to check if insiders are buying FBR shares with their own money (free access).
If you want to buy a stock that is better than FBR, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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. Thank you for reading.