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The performance at Coventry Group Ltd (ASX:CYG) has been quite strong recently and CEO Robert Bulluss has played a role in it. Coming up to the next AGM on 21 October 2021, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
Comparing Coventry Group Ltd's CEO Compensation With the industry
Our data indicates that Coventry Group Ltd has a market capitalization of AU$164m, and total annual CEO compensation was reported as AU$749k for the year to June 2021. We note that's an increase of 31% above last year. In particular, the salary of AU$398.3k, makes up a fairly large portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below AU$270m, we found that the median total CEO compensation was AU$629k. From this we gather that Robert Bulluss is paid around the median for CEOs in the industry. Moreover, Robert Bulluss also holds AU$1.2m worth of Coventry Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Speaking on an industry level, nearly 56% of total compensation represents salary, while the remainder of 44% is other remuneration. Our data reveals that Coventry Group allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Coventry Group Ltd's Growth Numbers
Over the past three years, Coventry Group Ltd has seen its earnings per share (EPS) grow by 133% per year. Its revenue is up 17% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Coventry Group Ltd Been A Good Investment?
We think that the total shareholder return of 77%, over three years, would leave most Coventry Group Ltd shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Coventry Group that you should be aware of before investing.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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