Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Shayne Elliott became the CEO of Australia and New Zealand Banking Group Limited (ASX:ANZ) in 2016. This analysis aims first to contrast CEO compensation with other large 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.
How Does Shayne Elliott's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Australia and New Zealand Banking Group Limited has a market cap of AU$77b, and is paying total annual CEO compensation of AU$5.6m. (This is based on the year to September 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$2.1m. When we examined a group of companies with market caps over AU$11b, we found that their median CEO total compensation was AU$5.1m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Shayne Elliott is paid around the average of 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 Australia and New Zealand Banking Group has changed over time.
Is Australia and New Zealand Banking Group Limited Growing?
Australia and New Zealand Banking Group Limited has increased its earnings per share (EPS) by an average of 4.6% a year, over the last three years (using a line of best fit). It saw its revenue drop -4.9% over the last year.
I generally like to see a little revenue growth, but I'm happy with the EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Australia and New Zealand Banking Group Limited Been A Good Investment?
Australia and New Zealand Banking Group Limited has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Shayne Elliott is paid around the same as most CEOs of large companies.
The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. While the CEO may not be underpaid, we don't think the pay is too generous either. Shareholders may want to check for free if Australia and New Zealand Banking Group insiders are buying or selling shares.
Important note: Australia and New Zealand Banking Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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 firstname.lastname@example.org. 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.