Is Huon Aquaculture Group Limited's (ASX:HUO) CEO Pay Justified?
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In 1970 Peter Bender was appointed CEO of Huon Aquaculture Group Limited (ASX:HUO). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Huon Aquaculture Group
How Does Peter Bender's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Huon Aquaculture Group Limited has a market cap of AU$404m, and is paying total annual CEO compensation of AU$963k. (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$515k. When we examined a selection of companies with market caps ranging from AU$144m to AU$575m, we found the median CEO total compensation was AU$761k.
So Peter Bender 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.
You can see a visual representation of the CEO compensation at Huon Aquaculture Group, below.
Is Huon Aquaculture Group Limited Growing?
Over the last three years Huon Aquaculture Group Limited has grown its earnings per share (EPS) by an average of 41% per year (using a line of best fit). In the last year, its revenue is down -4.2%.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has Huon Aquaculture Group Limited Been A Good Investment?
Most shareholders would probably be pleased with Huon Aquaculture Group Limited for providing a total return of 51% over three years. 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...
Peter Bender is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Huon Aquaculture Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
