U.S. Markets closed

Is PWR Holdings Limited's (ASX:PWH) CEO Overpaid Relative To Its Peers?

Simply Wall St

Kees Weel became the CEO of PWR Holdings Limited (ASX:PWH) in 2003. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for PWR Holdings

How Does Kees Weel's Compensation Compare With Similar Sized Companies?

Our data indicates that PWR Holdings Limited is worth AU$421m, and total annual CEO compensation is AU$621k. (This is based on the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$350k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$147m to AU$589m. The median total CEO compensation was AU$723k.

So Kees Weel 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 PWR Holdings has changed over time.

ASX:PWH CEO Compensation, August 3rd 2019

Is PWR Holdings Limited Growing?

On average over the last three years, PWR Holdings Limited has grown earnings per share (EPS) by 13% each year (using a line of best fit). It achieved revenue growth of 13% over the 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 PWR Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 55% over three years, PWR Holdings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Kees Weel 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. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying PWR Holdings shares with their own money (free access).

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.

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.