Alan Joyce became the CEO of Qantas Airways Limited (ASX:QAN) in 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Alan Joyce’s Compensation Compare With Similar Sized Companies?
Our data indicates that Qantas Airways Limited is worth AU$8.2b, and total annual CEO compensation is AU$8m. That’s actually a decrease on the year before. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$5.7b to AU$17.0b. The median total CEO compensation was AU$4m.
Thus we can conclude that Alan Joyce receives more in total compensation than the median of a group of companies in the same market, and of similar size to Qantas Airways Limited. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Qantas Airways has changed over time.
Is Qantas Airways Limited Growing?
Over the last three years Qantas Airways Limited has grown its earnings per share (EPS) by an average of 12% per year. Its revenue is up 6.2% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Qantas Airways Limited Been A Good Investment?
Most shareholders would probably be pleased with Qantas Airways Limited for providing a total return of 51% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Qantas Airways Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. 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 Qantas Airways Limited insiders are buying or selling shares.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.