Paul Hyslop is the CEO of Zoono Group Limited (ASX:ZNO), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Zoono Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Zoono Group Limited's CEO Compensation With the industry
According to our data, Zoono Group Limited has a market capitalization of AU$219m, and paid its CEO total annual compensation worth NZ$428k over the year to June 2020. We note that's an increase of 13% above last year. In particular, the salary of NZ$377.9k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar companies from the same industry with market caps ranging from AU$132m to AU$529m, we found that the median CEO total compensation was NZ$520k. This suggests that Zoono Group remunerates its CEO largely in line with the industry average. What's more, Paul Hyslop holds AU$93m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. Zoono Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Zoono Group Limited's Growth Numbers
Over the past three years, Zoono Group Limited has seen its earnings per share (EPS) grow by 123% per year. It achieved revenue growth of 2,050% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Zoono Group Limited Been A Good Investment?
Most shareholders would probably be pleased with Zoono Group Limited for providing a total return of 289% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As we touched on above, Zoono Group Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. So one could argue that CEO compensation is quite modest, if you consider company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Zoono Group (1 is potentially serious!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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