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Is CoAssets Limited's (ASX:CA8) CEO Being Overpaid?

Simply Wall St

Getty Goh has been the CEO of CoAssets Limited (ASX:CA8) since 2015. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for CoAssets

How Does Getty Goh's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that CoAssets Limited has a market cap of AU$13m, and reported total annual CEO compensation of S$120k for the year to June 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at S$105k. We looked at a group of companies with market capitalizations under S$272m, and the median CEO total compensation was S$352k.

A first glance this seems like a real positive for shareholders, since Getty Goh is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at CoAssets has changed from year to year.

ASX:CA8 CEO Compensation, November 12th 2019
ASX:CA8 CEO Compensation, November 12th 2019

Is CoAssets Limited Growing?

On average over the last three years, CoAssets Limited has grown earnings per share (EPS) by 89% each year (using a line of best fit). It achieved revenue growth of 319% 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. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has CoAssets Limited Been A Good Investment?

With a three year total loss of 68%, CoAssets Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

CoAssets Limited is currently paying its CEO below what is normal for companies of its size.

Many would consider this to indicate that the pay is modest since the business is growing. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we don't think, Getty Goh is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. Whatever your view on compensation, you might want to check if insiders are buying or selling CoAssets shares (free trial).

Important note: CoAssets 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.