How Much is HiTech Group Australia Limited's (ASX:HIT) CEO Getting Paid?

Elias Hazouri has been the CEO of HiTech Group Australia Limited (ASX:HIT) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

Check out our latest analysis for HiTech Group Australia

How Does Elias Hazouri's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that HiTech Group Australia Limited has a market cap of AU$55m, and reported total annual CEO compensation of AU$400k for the year to June 2019. Notably, the salary of AU$400k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below AU$286m. The median CEO total compensation in that group is AU$376k.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. On a company level, HiTech Group Australia prefers to reward its CEO through a salary, opting not to pay Elias Hazouri through non-salary benefits.

So Elias Hazouri is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see, below, how CEO compensation at HiTech Group Australia has changed over time.

Is HiTech Group Australia Limited Growing?

HiTech Group Australia Limited has seen earnings per share (EPS) move positively by an average of 4.4% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 16%.

I think the revenue growth is good. And the improvement in earnings per share is modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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 HiTech Group Australia Limited Been A Good Investment?

I think that the total shareholder return of 223%, over three years, would leave most HiTech Group Australia Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Elias Hazouri is paid around the same as most CEOs of similar size companies.

The company isn't showing particularly great growth, but shareholder returns have been pleasing. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. Looking into other areas, we've picked out 3 warning signs for HiTech Group Australia that investors should think about before committing capital to this 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.