U.S. Markets close in 1 hr 56 mins

Is Growthpoint Properties Australia’s (ASX:GOZ) CEO Being Overpaid?

Tim Collyer has been the CEO of Growthpoint Properties Australia (ASX:GOZ) since 2010. 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.

View our latest analysis for Growthpoint Properties Australia

How Does Tim Collyer’s Compensation Compare With Similar Sized Companies?

According to our data, Growthpoint Properties Australia has a market capitalization of AU$2.5b, and pays its CEO total annual compensation worth AU$2m. That’s a notable increase of 14% on last year. We examined companies with market caps from AU$1.4b to AU$4.5b, and discovered that the median CEO compensation of that group was AU$3m.

That means Tim Collyer receives fairly typical remuneration for the CEO of a company that size. 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 Growthpoint Properties Australia has changed over time.

ASX:GOZ CEO Compensation October 31st 18

Is Growthpoint Properties Australia Growing?

Over the last three years Growthpoint Properties Australia has grown its earnings per share (EPS) by an average of 5.9% per year. Its revenue is down -1.4% over last year.

I would prefer it if there was revenue growth, but it is good to see EPS growth. 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.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Growthpoint Properties Australia Been A Good Investment?

Boasting a total shareholder return of 43% over three years, Growthpoint Properties Australia has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

Remuneration for Tim Collyer 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 all things considered I’d venture that the CEO pay is appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Growthpoint Properties Australia.

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.