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How Should Investors React To Autosports Group Limited's (ASX:ASG) CEO Pay?

Simply Wall St

Nick Pagent became the CEO of Autosports Group Limited (ASX:ASG) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Autosports Group

How Does Nick Pagent's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Autosports Group Limited has a market cap of AU$330m, and reported total annual CEO compensation of AU$924k for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$600k. We examined companies with market caps from AU$149m to AU$597m, and discovered that the median CEO total compensation of that group was AU$754k.

So Nick Pagent 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, below, how CEO compensation at Autosports Group has changed over time.

ASX:ASG CEO Compensation, February 1st 2020

Is Autosports Group Limited Growing?

Autosports Group Limited has increased its earnings per share (EPS) by an average of 1.7% a year, over the last three years (using a line of best fit). In the last year, its revenue changed by just 0.1%.

I'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.

Has Autosports Group Limited Been A Good Investment?

Since shareholders would have lost about 30% over three years, some Autosports Group Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Nick Pagent is paid around what is normal the leaders of comparable size companies.

We would like to see somewhat stronger per share growth. And it's hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. So you may want to check if insiders are buying Autosports Group shares with their own money (free access).

If you want to buy a stock that is better than Autosports Group, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.