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How Should Investors React To Apollo Tourism & Leisure Ltd's (ASX:ATL) CEO Pay?

Simply Wall St

Luke Trouchet has been the CEO of Apollo Tourism & Leisure Ltd (ASX:ATL) since 2001. First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Apollo Tourism & Leisure

How Does Luke Trouchet's Compensation Compare With Similar Sized Companies?

According to our data, Apollo Tourism & Leisure Ltd has a market capitalization of AU$91m, and paid its CEO total annual compensation worth AU$566k over the year to June 2019. That's just a smallish increase of 1.0% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$530k. We looked at a group of companies with market capitalizations under AU$290m, and the median CEO total compensation was AU$378k.

It would therefore appear that Apollo Tourism & Leisure Ltd pays Luke Trouchet more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Apollo Tourism & Leisure has changed over time.

ASX:ATL CEO Compensation, November 1st 2019

Is Apollo Tourism & Leisure Ltd Growing?

Over the last three years Apollo Tourism & Leisure Ltd has grown its earnings per share (EPS) by an average of 3.5% per year (using a line of best fit). In the last year, its revenue is up 2.7%.

I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.

Has Apollo Tourism & Leisure Ltd Been A Good Investment?

Given the total loss of 59% over three years, many shareholders in Apollo Tourism & Leisure Ltd are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We examined the amount Apollo Tourism & Leisure Ltd pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. So you may want to check if insiders are buying Apollo Tourism & Leisure shares with their own money (free access).

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.