Lee Schofield became the CEO of Alliance Aviation Services Limited (ASX:AQZ) in 2015. 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. 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.
How Does Lee Schofield's Compensation Compare With Similar Sized Companies?
According to our data, Alliance Aviation Services Limited has a market capitalization of AU$316m, and paid its CEO total annual compensation worth AU$508k over the year to June 2019. That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$384k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$145m to AU$582m. The median total CEO compensation was AU$685k.
So Lee Schofield receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Alliance Aviation Services, below.
Is Alliance Aviation Services Limited Growing?
On average over the last three years, Alliance Aviation Services Limited has grown earnings per share (EPS) by 11% each year (using a line of best fit). It achieved revenue growth of 12% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Alliance Aviation Services Limited Been A Good Investment?
I think that the total shareholder return of 272%, over three years, would leave most Alliance Aviation Services Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Lee Schofield is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Alliance Aviation Services (free visualization of insider trades).
Important note: Alliance Aviation Services 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.
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