Yahoo Finanza How Much Did 360 Capital Group Limited's (ASX:TGP) CEO Pocket Last Year?
Tony Pitt became the CEO of 360 Capital Group Limited (ASX:TGP) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
See our latest analysis for 360 Capital Group
How Does Tony Pitt's Compensation Compare With Similar Sized Companies?
Our data indicates that 360 Capital Group Limited is worth AU$187m, and total annual CEO compensation was reported as AU$796k for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$548k. We took a group of companies with market capitalizations below AU$306m, and calculated the median CEO total compensation to be AU$384k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 45% of total compensation represents salary and 55% is other remuneration. 360 Capital Group pays out 69% of aggregate payment in the shape of a salary, which is significantly higher than the industry average.
It would therefore appear that 360 Capital Group Limited pays Tony Pitt more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. The graphic below shows how CEO compensation at 360 Capital Group has changed from year to year.
Is 360 Capital Group Limited Growing?
On average over the last three years, 360 Capital Group Limited has shrunk earnings per share by 99% each year (measured with a line of best fit). In the last year, its revenue is down 21%.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. 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 360 Capital Group Limited Been A Good Investment?
360 Capital Group Limited has generated a total shareholder return of 8.9% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We examined the amount 360 Capital 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.
Earnings per share have not grown in three years, and the revenue growth fails to impress us. While shareholder returns are acceptable, they don't delight. So you may want to delve deeper, because we don't think the CEO pay is too low. Taking a breather from CEO compensation, we've spotted 5 warning signs for 360 Capital Group (of which 1 can't be ignored!) you should know about in order to have a holistic understanding of the stock.
If you want to buy a stock that is better than 360 Capital Group, this free list of high return, low debt companies is a great place to look.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.
