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Does Quickstep Holdings Limited's (ASX:QHL) CEO Pay Reflect Performance?

Simply Wall St

Mark Burgess became the CEO of Quickstep Holdings Limited (ASX:QHL) in 2017. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Quickstep Holdings

How Does Mark Burgess's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Quickstep Holdings Limited has a market cap of AU$82m, and reported total annual CEO compensation of AU$889k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$479k. We looked at a group of companies with market capitalizations under AU$290m, and the median CEO total compensation was AU$379k.

It would therefore appear that Quickstep Holdings Limited pays Mark Burgess 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 better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Quickstep Holdings has changed over time.

ASX:QHL CEO Compensation, January 16th 2020

Is Quickstep Holdings Limited Growing?

Quickstep Holdings Limited has increased its earnings per share (EPS) by an average of 72% a year, over the last three years (using a line of best fit). It achieved revenue growth of 24% over the last year.

This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Quickstep Holdings Limited Been A Good Investment?

With a total shareholder return of 15% over three years, Quickstep Holdings Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We examined the amount Quickstep Holdings 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.

However we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven't been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Quickstep Holdings (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.