Does SEEK Limited's (ASX:SEK) CEO Pay Compare Well With Peers?
In 2011 Andrew Bassat was appointed CEO of SEEK Limited (ASX:SEK). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for SEEK
How Does Andrew Bassat's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that SEEK Limited has a market cap of AU$7.7b, and reported total annual CEO compensation of AU$4.8m for the year to June 2019. That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at AU$2.5m. When we examined a selection of companies with market caps ranging from AU$5.8b to AU$18b, we found the median CEO total compensation was AU$4.4m.
That means Andrew Bassat receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at SEEK, below.
Is SEEK Limited Growing?
Over the last three years SEEK Limited has shrunk its earnings per share by an average of 38% per year (measured with a line of best fit). It achieved revenue growth of 18% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has SEEK Limited Been A Good Investment?
Most shareholders would probably be pleased with SEEK Limited for providing a total return of 60% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Andrew Bassat is paid around the same as most CEOs of similar size companies.
The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we doubt many are complaining about the fairly normal CEO pay. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at SEEK.
If you want to buy a stock that is better than SEEK, this free list of high return, low debt companies is a great place to look.
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.
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