Steve Gillard became the CEO of GDI Property Group (ASX:GDI) in 2013. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Steve Gillard's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that GDI Property Group has a market cap of AU$819m, and reported total annual CEO compensation of AU$1.9m for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$740k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from AU$300m to AU$1.2b, we found the median CEO total compensation was AU$1.0m.
As you can see, Steve Gillard is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean GDI Property Group is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at GDI Property Group has changed from year to year.
Is GDI Property Group Growing?
On average over the last three years, GDI Property Group has grown earnings per share (EPS) by 74% each year (using a line of best fit). In the last year, its revenue is up 2.3%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has GDI Property Group Been A Good Investment?
I think that the total shareholder return of 82%, over three years, would leave most GDI Property Group shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We examined the amount GDI Property Group pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at GDI Property Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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