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Does Threat Protect Australia Limited's (ASX:TPS) CEO Pay Reflect Performance?

Simply Wall St

In 2015 Demetrios Pynes was appointed CEO of Threat Protect Australia Limited (ASX:TPS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Threat Protect Australia

How Does Demetrios Pynes's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Threat Protect Australia Limited has a market cap of AU$34m, and is paying total annual CEO compensation of AU$434k. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$245k. We took a group of companies with market capitalizations below AU$297m, and calculated the median CEO total compensation to be AU$362k.

So Demetrios Pynes is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Threat Protect Australia has changed over time.

ASX:TPS CEO Compensation, September 3rd 2019

Is Threat Protect Australia Limited Growing?

Over the last three years Threat Protect Australia Limited has shrunk its earnings per share by an average of 42% per year (measured with a line of best fit). Its revenue is up 34% over last year.

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. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Threat Protect Australia Limited Been A Good Investment?

I think that the total shareholder return of 47%, over three years, would leave most Threat Protect Australia Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Remuneration for Demetrios Pynes is close enough to the median pay for a CEO of a similar sized company .

The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. Whatever your view on compensation, you might want to check if insiders are buying or selling Threat Protect Australia shares (free trial).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.