Yahoo Finance Should You Worry About Fluence Corporation Limited's (ASX:FLC) CEO Pay?
Henry Charrabé is the CEO of Fluence Corporation Limited (ASX:FLC). 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.
View our latest analysis for Fluence
How Does Henry Charrabé's Compensation Compare With Similar Sized Companies?
According to our data, Fluence Corporation Limited has a market capitalization of AU$281m, and paid its CEO total annual compensation worth US$2.0m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$900k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$480k.
As you can see, Henry Charrabé is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Fluence Corporation Limited is paying too much. 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 Fluence, below.
Is Fluence Corporation Limited Growing?
Fluence Corporation Limited has reduced its earnings per share by an average of 29% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 40%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.
Has Fluence Corporation Limited Been A Good Investment?
Given the total loss of 49% over three years, many shareholders in Fluence Corporation Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount Fluence Corporation Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Fluence (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
