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Is Nuheara Limited's (ASX:NUH) CEO Paid At A Competitive Rate?

Simply Wall St

The CEO of Nuheara Limited (ASX:NUH) is Justin Miller. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.

Check out our latest analysis for Nuheara

How Does Justin Miller's Compensation Compare With Similar Sized Companies?

According to our data, Nuheara Limited has a market capitalization of AU$36m, and paid its CEO total annual compensation worth AU$438k over the year to June 2019. We note that's an increase of 38% above last year. While we always look at total compensation first, we note that the salary component is less, at AU$400k. We took a group of companies with market capitalizations below AU$293m, and calculated the median CEO total compensation to be AU$375k.

So Justin Miller receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Nuheara has changed over time.

ASX:NUH CEO Compensation, December 11th 2019

Is Nuheara Limited Growing?

On average over the last three years, Nuheara Limited has grown earnings per share (EPS) by 23% each year (using a line of best fit). Its revenue is down 44% over last year.

This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Nuheara Limited Been A Good Investment?

Given the total loss of 54% over three years, many shareholders in Nuheara 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...

Justin Miller is paid around what is normal the leaders of comparable size companies.

We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Nuheara shares (free trial).

Important note: Nuheara may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.