Anthony Rivas has been the CEO of Collection House Limited (ASX:CLH) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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 Anthony Rivas's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Collection House Limited has a market cap of AU$176m, and reported total annual CEO compensation of AU$1.3m for the year to June 2019. That's a modest increase of 4.4% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$485k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined a group of similar sized companies, with market capitalizations of below AU$295m. The median CEO total compensation in that group is AU$373k.
Thus we can conclude that Anthony Rivas receives more in total compensation than the median of a group of companies in the same market, and of similar size to Collection House Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Collection House, below.
Is Collection House Limited Growing?
Collection House Limited has increased its earnings per share (EPS) by an average of 19% a year, over the last three years (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 a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Collection House Limited Been A Good Investment?
With a total shareholder return of 26% over three years, Collection House Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Collection House Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Collection House.
Important note: Collection House 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 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. Thank you for reading.