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In 2011 David Robert Attenborough was appointed CEO of Tabcorp Holdings Limited (ASX:TAH). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
How Does David Robert Attenborough's Compensation Compare With Similar Sized Companies?
According to our data, Tabcorp Holdings Limited has a market capitalization of AU$9.3b, and pays its CEO total annual compensation worth AU$4.0m. (This is based on the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$1.6m. When we examined a selection of companies with market caps ranging from AU$5.8b to AU$17b, we found the median CEO total compensation was AU$4.1m.
So David Robert Attenborough receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Tabcorp Holdings has changed over time.
Is Tabcorp Holdings Limited Growing?
On average over the last three years, Tabcorp Holdings Limited has shrunk earnings per share by 86% each year (measured with a line of best fit). In the last year, its revenue is up 120%.
The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.
Has Tabcorp Holdings Limited Been A Good Investment?
Tabcorp Holdings Limited has generated a total shareholder return of 25% over three years, so most shareholders would 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.
Remuneration for David Robert Attenborough is close enough to the median pay for a CEO of a similar sized company .
We think many would like to see better growth. While the CEO may not be underpaid, we don't think the pay is too generous either. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Tabcorp Holdings (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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 email@example.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.