Jim Clayton became the CEO of Breville Group Limited (ASX:BRG) in 2015. 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 Jim Clayton's Compensation Compare With Similar Sized Companies?
According to our data, Breville Group Limited has a market capitalization of AU$2.3b, and paid its CEO total annual compensation worth AU$2.0m over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$915k. We examined companies with market caps from AU$1.4b to AU$4.6b, and discovered that the median CEO total compensation of that group was AU$2.1m.
That means Jim Clayton receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Breville Group has changed from year to year.
Is Breville Group Limited Growing?
Over the last three years Breville Group Limited has grown its earnings per share (EPS) by an average of 10% per year (using a line of best fit). Its revenue is up 18% over last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Breville Group Limited Been A Good Investment?
Boasting a total shareholder return of 126% over three years, Breville Group Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Jim Clayton is paid around what is normal the leaders of comparable size companies.
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! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Breville Group.
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 email@example.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.