Does LiveTiles Limited's (ASX:LVT) CEO Salary Compare Well With Others?
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Karl Redenbach became the CEO of LiveTiles Limited (ASX:LVT) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
Check out our latest analysis for LiveTiles
How Does Karl Redenbach's Compensation Compare With Similar Sized Companies?
According to our data, LiveTiles Limited has a market capitalization of AU$345m, and pays its CEO total annual compensation worth AU$1.3m. (This figure is for the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$582k. When we examined a selection of companies with market caps ranging from AU$142m to AU$568m, we found the median CEO total compensation was AU$750k.
It would therefore appear that LiveTiles Limited pays Karl Redenbach more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. 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 LiveTiles has changed from year to year.
Is LiveTiles Limited Growing?
On average over the last three years, LiveTiles Limited has shrunk earnings per share by 28% each year (measured with a line of best fit). In the last year, its revenue is up 218%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has LiveTiles Limited Been A Good Investment?
Most shareholders would probably be pleased with LiveTiles Limited for providing a total return of 124% 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.
In Summary...
We examined the amount LiveTiles Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling LiveTiles shares (free trial).
Important note: LiveTiles may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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 editorial-team@simplywallst.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.
