In 2012 Matt Spencer was appointed CEO of Baby Bunting Group Limited (ASX:BBN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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 Matt Spencer's Compensation Compare With Similar Sized Companies?
Our data indicates that Baby Bunting Group Limited is worth AU$276m, and total annual CEO compensation is AU$686k. (This is based on the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$475k. We examined companies with market caps from AU$147m to AU$588m, and discovered that the median CEO total compensation of that group was AU$716k.
That means Matt Spencer 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.
You can see a visual representation of the CEO compensation at Baby Bunting Group, below.
Is Baby Bunting Group Limited Growing?
Baby Bunting Group Limited has increased its earnings per share (EPS) by an average of 5.9% a year, over the last three years (using a line of best fit). Its revenue is up 12% over last year.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Shareholders might be interested in this free visualization of analyst forecasts.
Has Baby Bunting Group Limited Been A Good Investment?
With a three year total loss of 21%, Baby Bunting Group Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Matt Spencer is close enough to the median pay for a CEO of a similar sized company .
We would like to see somewhat stronger per share growth. And shareholder returns have been disappointing over the last three years. So many would argue that the CEO is certainly not underpaid. Whatever your view on compensation, you might want to check if insiders are buying or selling Baby Bunting Group shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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