Yahoo Finance Why Nufarm Limited’s (ASX:NUF) CEO Pay Matters To You
Greg Hunt has been the CEO of Nufarm Limited (ASX:NUF) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Nufarm
How Does Greg Hunt’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Nufarm Limited has a market cap of AU$2.0b, and is paying total annual CEO compensation of AU$2m. That’s less than last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$1.4b to AU$4.5b. The median total CEO compensation was AU$3m.
So Greg Hunt receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Nufarm has changed over time.
Is Nufarm Limited Growing?
Over the last three years Nufarm Limited has grown its earnings per share (EPS) by an average of 43% per year. In the last year, its revenue is up 6.3%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Nufarm Limited Been A Good Investment?
With a three year total loss of 28%, Nufarm Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
Greg Hunt is paid around what is normal the leaders of comparable size companies.
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Nufarm Limited.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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.
