Should You Be Pleased About The CEO Pay At IDP Education Limited’s (ASX:IEL)
In 2015 Andrew Barkla was appointed CEO of IDP Education Limited (ASX:IEL). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for IDP Education
How Does Andrew Barkla’s Compensation Compare With Similar Sized Companies?
According to our data, IDP Education Limited has a market capitalization of AU$3.8b, and pays its CEO total annual compensation worth AU$2.5m. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$775k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$2.8b to AU$9.0b. The median total CEO compensation was AU$3.4m.
That means Andrew Barkla receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at IDP Education has changed over time.
Is IDP Education Limited Growing?
IDP Education Limited has increased its earnings per share (EPS) by an average of 16% a year, over the last three years (using a line of best fit). Its revenue is up 23% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has IDP Education Limited Been A Good Investment?
Most shareholders would probably be pleased with IDP Education Limited for providing a total return of 316% over three years. 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.
In Summary…
Remuneration for Andrew Barkla is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling IDP Education (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
