Scott Farthing has been the CEO of EVZ Limited (ASX:EVZ) since 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Scott Farthing's Compensation Compare With Similar Sized Companies?
According to our data, EVZ Limited has a market capitalization of AU$16m, and paid its CEO total annual compensation worth AU$418k over the year to June 2019. That's actually a decrease on the year before. It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$398k. We took a group of companies with market capitalizations below AU$292m, and calculated the median CEO total compensation to be AU$376k.
So Scott Farthing receives a similar amount to the median CEO pay, amongst the companies we looked at. 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.
The graphic below shows how CEO compensation at EVZ has changed from year to year.
Is EVZ Limited Growing?
On average over the last three years, EVZ Limited has grown earnings per share (EPS) by 59% each year (using a line of best fit). It achieved revenue growth of 20% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has EVZ Limited Been A Good Investment?
I think that the total shareholder return of 196%, over three years, would leave most EVZ 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.
Scott Farthing is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling EVZ shares (free trial).
If you want to buy a stock that is better than EVZ, 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.