Trevor Croker became the CEO of Aristocrat Leisure Limited (ASX:ALL) in 2017. This analysis aims first to contrast CEO compensation with other large 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Trevor Croker's Compensation Compare With Similar Sized Companies?
Our data indicates that Aristocrat Leisure Limited is worth AU$19b, and total annual CEO compensation is AU$4.5m. (This figure is for the year to September 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$1.5m. When we examined a group of companies with market caps over AU$12b, we found that their median CEO total compensation was AU$5.4m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
That means Trevor Croker receives fairly typical remuneration for the CEO of a large company. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Aristocrat Leisure has changed from year to year.
Is Aristocrat Leisure Limited Growing?
On average over the last three years, Aristocrat Leisure Limited has grown earnings per share (EPS) by 23% each year (using a line of best fit). It achieved revenue growth of 47% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Aristocrat Leisure Limited Been A Good Investment?
I think that the total shareholder return of 100%, over three years, would leave most Aristocrat Leisure Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Remuneration for Trevor Croker is close enough to the median pay for a CEO of a large company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Aristocrat Leisure insiders are buying or selling shares.
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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