Matt Hill has been the CEO of Globe International Limited (ASX:GLB) since 2004. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Matt Hill's Compensation Compare With Similar Sized Companies?
Our data indicates that Globe International Limited is worth AU$62m, and total annual CEO compensation was reported as AU$1.5m for the year to June 2019. That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at AU$1.2m. We looked at a group of companies with market capitalizations under AU$296m, and the median CEO total compensation was AU$375k.
Thus we can conclude that Matt Hill receives more in total compensation than the median of a group of companies in the same market, and of similar size to Globe International Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Globe International has changed from year to year.
Is Globe International Limited Growing?
On average over the last three years, Globe International Limited has grown earnings per share (EPS) by 28% each year (using a line of best fit). It achieved revenue growth of 7.7% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Globe International Limited Been A Good Investment?
I think that the total shareholder return of 87%, over three years, would leave most Globe International Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount Globe International Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Globe International insiders are buying or selling shares.
If you want to buy a stock that is better than Globe International, this free list of high return, low debt companies is a great place to look.
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