In 2010 Daniel Riley was appointed CEO of CML Group Limited (ASX:CGR). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Daniel Riley's Compensation Compare With Similar Sized Companies?
According to our data, CML Group Limited has a market capitalization of AU$93m, and paid its CEO total annual compensation worth AU$600k over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$375k. We took a group of companies with market capitalizations below AU$296m, and calculated the median CEO total compensation to be AU$372k.
As you can see, Daniel Riley is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean CML Group Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at CML Group has changed from year to year.
Is CML Group Limited Growing?
On average over the last three years, CML Group Limited has grown earnings per share (EPS) by 42% each year (using a line of best fit). Its revenue is up 2.0% over last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has CML Group Limited Been A Good Investment?
Most shareholders would probably be pleased with CML Group Limited for providing a total return of 107% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We examined the amount CML Group Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying CML Group shares with their own money (free access).
If you want to buy a stock that is better than CML Group, 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 firstname.lastname@example.org. 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.