Is CSR Limited’s (ASX:CSR) CEO Paid At A Competitive Rate?
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Rob Sindel became the CEO of CSR Limited (ASX:CSR) in 2011. 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for CSR
How Does Rob Sindel’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that CSR Limited has a market cap of AU$1.5b, and is paying total annual CEO compensation of AU$3.3m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at AU$1.2m. We examined companies with market caps from AU$551m to AU$2.2b, and discovered that the median CEO compensation of that group was AU$1.7m.
It would therefore appear that CSR Limited pays Rob Sindel more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration 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 CSR, below.
Is CSR Limited Growing?
Earnings per share at CSR Limited are much the same as they were three years ago, albeit slightly higher. Its revenue is up 4.9% over last year.
I’d prefer higher revenue growth, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has CSR Limited Been A Good Investment?
With a total shareholder return of 31% over three years, CSR Limited shareholders would, in general, be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
We compared the total CEO remuneration paid by CSR 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.
Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. So it’s certainly hard to argue that the CEO is modestly paid, although we don’t see the remuneration as an issue. Shareholders may want to check for free if CSR insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
