Yahoo Finance Should You Worry About Aurizon Holdings Limited's (ASX:AZJ) CEO Pay?
Tony Harding has been the CEO of Aurizon Holdings Limited (ASX:AZJ) since 2016. 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 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.
Check out our latest analysis for Aurizon Holdings
How Does Tony Harding's Compensation Compare With Similar Sized Companies?
Our data indicates that Aurizon Holdings Limited is worth AU$11b, and total annual CEO compensation was reported as AU$4.3m for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$1.7m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from AU$5.9b to AU$18b, and the median CEO total compensation was AU$4.1m.
So Tony Harding receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Aurizon Holdings has changed from year to year.
Is Aurizon Holdings Limited Growing?
Aurizon Holdings Limited has increased its earnings per share (EPS) by an average of 53% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 6.6%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has Aurizon Holdings Limited Been A Good Investment?
With a total shareholder return of 26% over three years, Aurizon Holdings Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Remuneration for Tony Harding is close enough to the median pay for a CEO of a similar sized company .
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. Shareholders may want to check for free if Aurizon Holdings insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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.
