Does Capral Limited’s (ASX:CAA) CEO Pay Compare Well With Peers?
Tony Dragicevich became the CEO of Capral Limited (ASX:CAA) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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.
See our latest analysis for Capral
How Does Tony Dragicevich’s Compensation Compare With Similar Sized Companies?
According to our data, Capral Limited has a market capitalization of US$72m, and pays its CEO total annual compensation worth US$1.1m. That’s less than last year. We looked at a group of companies with market capitalizations under AU$273m, and the median CEO compensation was AU$362k.
As you can see, Tony Dragicevich is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Capral Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Capral has changed over time.
Is Capral Limited Growing?
Over the last three years Capral Limited has grown its earnings per share (EPS) by an average of 55% per year. In the last year, its revenue is up 8.7%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Capral Limited Been A Good Investment?
Boasting a total shareholder return of 63% over three years, Capral Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared total CEO remuneration at Capral Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Capral 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 editorial-team@simplywallst.com.
