Rod Sherwood became the CEO of CV Check Ltd (ASX:CV1) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Rod Sherwood's Compensation Compare With Similar Sized Companies?
According to our data, CV Check Ltd has a market capitalization of AU$42m, and paid its CEO total annual compensation worth AU$361k over the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$284k. We looked at a group of companies with market capitalizations under AU$290m, and the median CEO total compensation was AU$378k.
So Rod Sherwood receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at CV Check, below.
Is CV Check Ltd Growing?
CV Check Ltd has increased its earnings per share (EPS) by an average of 78% a year, over the last three years (using a line of best fit). Its revenue is down 1.3% over last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has CV Check Ltd Been A Good Investment?
Most shareholders would probably be pleased with CV Check Ltd for providing a total return of 110% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Rod Sherwood is close enough to the median pay for a CEO of a similar sized company .
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! So you may want to check if insiders are buying CV Check shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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