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Is Senetas Corporation Limited's (ASX:SEN) CEO Paid At A Competitive Rate?

Simply Wall St

Andrew Wilson became the CEO of Senetas Corporation Limited (ASX:SEN) in 2012. 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 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.

Check out our latest analysis for Senetas

How Does Andrew Wilson's Compensation Compare With Similar Sized Companies?

According to our data, Senetas Corporation Limited has a market capitalization of AU$71m, and paid its CEO total annual compensation worth AU$493k over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$412k. We examined a group of similar sized companies, with market capitalizations of below AU$298m. The median CEO total compensation in that group is AU$379k.

So Andrew Wilson receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Senetas has changed from year to year.

ASX:SEN CEO Compensation, February 18th 2020

Is Senetas Corporation Limited Growing?

Senetas Corporation Limited has reduced its earnings per share by an average of 77% a year, over the last three years (measured with a line of best fit). Its revenue is up 12% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Senetas Corporation Limited Been A Good Investment?

Given the total loss of 27% over three years, many shareholders in Senetas Corporation 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...

Andrew Wilson is paid around what is normal the leaders of comparable size companies.

The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! Whatever your view on compensation, you might want to check if insiders are buying or selling Senetas shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.