Yahoo Finance Should You Worry About The Star Entertainment Group Limited's (ASX:SGR) CEO Pay?
In 2014 Matt Bekier was appointed CEO of The Star Entertainment Group Limited (ASX:SGR). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Star Entertainment Group
How Does Matt Bekier's Compensation Compare With Similar Sized Companies?
According to our data, The Star Entertainment Group Limited has a market capitalization of AU$4.0b, and paid its CEO total annual compensation worth AU$1.8m over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$1.7m. We looked at a group of companies with market capitalizations from AU$2.9b to AU$9.4b, and the median CEO total compensation was AU$3.3m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Star Entertainment Group has changed from year to year.
Is The Star Entertainment Group Limited Growing?
Over the last three years The Star Entertainment Group Limited has shrunk its earnings per share by an average of 9.1% per year (measured with a line of best fit). Its revenue is up 3.6% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has The Star Entertainment Group Limited Been A Good Investment?
The Star Entertainment Group Limited has not done too badly by shareholders, with a total return of 1.0%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
The Star Entertainment Group Limited is currently paying its CEO below what is normal for companies of its size.
Shareholders should note that compensation for Matt Bekier is under the median of a group of similar sized companies. But the business isn't growing earnings per share, and the returns to shareholders haven't been wonderful. So while shareholders shouldn't be overly concerned about CEO compensation, we suspect most would prefer see improved performance, before increasing pay. Whatever your view on compensation, you might want to check if insiders are buying or selling Star Entertainment 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.
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.
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