Yahoo Finance Should You Worry About The PAS Group Limited's (ASX:PGR) CEO Salary Level?
Eric Morris became the CEO of The PAS Group Limited (ASX:PGR) in 2005. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for PAS Group
How Does Eric Morris's Compensation Compare With Similar Sized Companies?
Our data indicates that The PAS Group Limited is worth AU$18m, and total annual CEO compensation was reported as AU$831k for the year to June 2019. That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at AU$730k. We took a group of companies with market capitalizations below AU$289m, and calculated the median CEO total compensation to be AU$378k.
Thus we can conclude that Eric Morris receives more in total compensation than the median of a group of companies in the same market, and of similar size to The PAS Group Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at PAS Group, below.
Is The PAS Group Limited Growing?
Over the last three years The PAS Group Limited has shrunk its earnings per share by an average of 91% per year (measured with a line of best fit). It achieved revenue growth of 9.2% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has The PAS Group Limited Been A Good Investment?
Since shareholders would have lost about 78% over three years, some The PAS Group Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared the total CEO remuneration paid by The PAS Group Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years. Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at PAS Group.
Important note: PAS Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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. Thank you for reading.
