In 2012 Adrian Littlewood was appointed CEO of Auckland International Airport Limited (NZSE:AIA). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Adrian Littlewood’s Compensation Compare With Similar Sized Companies?
Our data indicates that Auckland International Airport Limited is worth NZ$8.2b, and total annual CEO compensation is NZ$4m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of NZ$6.1b to NZ$18.4b. The median total CEO compensation was NZ$4m.
So Adrian Littlewood is paid around the average of 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.
The graphic below shows how CEO compensation at Auckland International Airport has changed from year to year.
Is Auckland International Airport Limited Growing?
On average over the last three years, Auckland International Airport Limited has grown earnings per share (EPS) by 32% each year. In the last year, its revenue is up 8.7%.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Auckland International Airport Limited Been A Good Investment?
Most shareholders would probably be pleased with Auckland International Airport Limited for providing a total return of 43% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Adrian Littlewood is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Auckland International Airport Limited shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, 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 firstname.lastname@example.org.