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Is Shaver Shop Group Limited (ASX:SSG) Excessively Paying Its CEO?

Simply Wall St

Cameron Fox has been the CEO of Shaver Shop Group Limited (ASX:SSG) since 2008. 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Shaver Shop Group

How Does Cameron Fox's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Shaver Shop Group Limited has a market cap of AU$66m, and is paying total annual CEO compensation of AU$592k. (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$550k. We took a group of companies with market capitalizations below AU$291m, and calculated the median CEO total compensation to be AU$363k.

As you can see, Cameron Fox is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Shaver Shop Group Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Shaver Shop Group, below.

ASX:SSG CEO Compensation, September 11th 2019

Is Shaver Shop Group Limited Growing?

Shaver Shop Group Limited has increased its earnings per share (EPS) by an average of 1.6% a year, over the last three years (using a line of best fit). Its revenue is up 8.0% over last year.

I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.

Has Shaver Shop Group Limited Been A Good Investment?

With a three year total loss of 41%, Shaver Shop Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We examined the amount Shaver Shop Group Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. So you may want to check if insiders are buying Shaver Shop Group shares with their own money (free access).

If you want to buy a stock that is better than Shaver Shop Group, this free list of high return, low debt companies is a great place to look.

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.