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The CEO of TNG Limited (ASX:TNG) is Paul Burton. 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 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 Paul Burton's Compensation Compare With Similar Sized Companies?
According to our data, TNG Limited has a market capitalization of AU$96m, and pays its CEO total annual compensation worth AU$627k. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$496k. We took a group of companies with market capitalizations below AU$286m, and calculated the median CEO total compensation to be AU$354k.
As you can see, Paul Burton is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean TNG Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at TNG has changed over time.
Is TNG Limited Growing?
TNG Limited has increased its earnings per share (EPS) by an average of 34% a year, over the last three years (using a line of best fit). Its revenue is down -9.5% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has TNG Limited Been A Good Investment?
With a three year total loss of 23%, TNG Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount TNG Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling TNG (free visualization of insider trades).
If you want to buy a stock that is better than TNG, this free list of high return, low debt companies is a great place to look.
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.