Ian Olson is the CEO of Pointerra Limited (ASX:3DP). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
How Does Ian Olson's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Pointerra Limited has a market cap of AU$28m, and reported total annual CEO compensation of AU$263k for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$240k. We examined a group of similar sized companies, with market capitalizations of below AU$290m. The median CEO total compensation in that group is AU$379k.
Most shareholders would consider it a positive that Ian Olson takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Pointerra has changed over time.
Is Pointerra Limited Growing?
On average over the last three years, Pointerra Limited has grown earnings per share (EPS) by 79% each year (using a line of best fit). It achieved revenue growth of 42% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Pointerra Limited Been A Good Investment?
Most shareholders would probably be pleased with Pointerra Limited for providing a total return of 104% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Pointerra Limited is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Ian Olson deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Pointerra shares with their own money (free access).
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 firstname.lastname@example.org. 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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