The CEO of Laserbond Limited (ASX:LBL) is Wayne Hooper. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Wayne Hooper’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Laserbond Limited has a market cap of AU$43m, and reported total annual CEO compensation of AU$368k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$313k. We examined a group of similar sized companies, with market capitalizations of below AU$305m. The median CEO total compensation in that group is AU$381k.
Next, let’s break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 80% of total compensation represents salary and 20% is other remuneration. Our data reveals that Laserbond allocates salary in line with the wider market.
So Wayne Hooper is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance. You can see, below, how CEO compensation at Laserbond has changed over time.
Is Laserbond Limited Growing?
Over the last three years Laserbond Limited has seen earnings per share (EPS) move in a positive direction by an average of 49% per year (using a line of best fit). In the last year, its revenue is up 24%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Laserbond Limited Been A Good Investment?
Boasting a total shareholder return of 279% over three years, Laserbond Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Wayne Hooper is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Taking a breather from CEO compensation, we’ve spotted 3 warning signs for Laserbond (of which 1 is potentially serious!) you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.