Thomas Beregi has been the CEO of Credit Corp Group Limited (ASX:CCP) since 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Thomas Beregi's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Credit Corp Group Limited has a market cap of AU$1.7b, and reported total annual CEO compensation of AU$2.4m for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$679k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$569m to AU$2.3b. The median total CEO compensation was AU$1.4m.
Thus we can conclude that Thomas Beregi receives more in total compensation than the median of a group of companies in the same market, and of similar size to Credit Corp Group Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Credit Corp Group, below.
Is Credit Corp Group Limited Growing?
Credit Corp Group Limited has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 6.2%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Credit Corp Group Limited Been A Good Investment?
Most shareholders would probably be pleased with Credit Corp Group Limited for providing a total return of 84% over three years. 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.
We compared the total CEO remuneration paid by Credit Corp Group Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Credit Corp Group shares with their own money (free access).
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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