How Does Axiom Properties' (ASX:AXI) CEO Salary Compare to Peers?
Ben Laurance is the CEO of Axiom Properties Limited (ASX:AXI), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Axiom Properties.
See our latest analysis for Axiom Properties
Comparing Axiom Properties Limited's CEO Compensation With the industry
According to our data, Axiom Properties Limited has a market capitalization of AU$26m, and paid its CEO total annual compensation worth AU$773k over the year to June 2020. We note that's an increase of 21% above last year. In particular, the salary of AU$531.8k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below AU$274m, reported a median total CEO compensation of AU$432k. Accordingly, our analysis reveals that Axiom Properties Limited pays Ben Laurance north of the industry median. Moreover, Ben Laurance also holds AU$4.3m worth of Axiom Properties stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | AU$532k | AU$516k | 69% |
Other | AU$241k | AU$122k | 31% |
Total Compensation | AU$773k | AU$638k | 100% |
On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. In Axiom Properties' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Axiom Properties Limited's Growth Numbers
Over the last three years, Axiom Properties Limited has shrunk its earnings per share by 60% per year. Its revenue is up 25% over the last year.
Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Axiom Properties Limited Been A Good Investment?
Boasting a total shareholder return of 83% over three years, Axiom Properties Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
As previously discussed, Ben is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Still, shareholder returns over the last three years,and recent revenue growth have been trending northwards. The only sore spot is EPS growth, which is negative over the same period. All things considered, although EPS growth would've been nice, the positive investor returns and revenue growth lead us to believe Ben is appropriately paid.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 5 warning signs (and 4 which are potentially serious) in Axiom Properties we think you should know about.
Switching gears from Axiom Properties, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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