How Much is Lindsay Australia Limited's (ASX:LAU) CEO Getting Paid?
In 2002 Michael Lindsay was appointed CEO of Lindsay Australia Limited (ASX:LAU). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Lindsay Australia
How Does Michael Lindsay's Compensation Compare With Similar Sized Companies?
Our data indicates that Lindsay Australia Limited is worth AU$107m, and total annual CEO compensation was reported as AU$1.1m for the year to June 2019. That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$828k. We looked at a group of companies with market capitalizations under AU$295m, and the median CEO total compensation was AU$375k.
As you can see, Michael Lindsay is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Lindsay Australia Limited 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 Lindsay Australia has changed from year to year.
Is Lindsay Australia Limited Growing?
Lindsay Australia Limited has increased its earnings per share (EPS) by an average of 2.8% a year, over the last three years (using a line of best fit). It achieved revenue growth of 7.1% over the last year.
I would argue that the improvement in revenue isn't particularly impressive, 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 Lindsay Australia Limited Been A Good Investment?
Given the total loss of 8.1% over three years, many shareholders in Lindsay Australia Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at Lindsay Australia Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that 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. Shareholders may want to check for free if Lindsay Australia insiders are buying or selling shares.
If you want to buy a stock that is better than Lindsay Australia, this free list of high return, low debt companies is a great place to look.
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.
