Is OneVue Holdings Limited’s (ASX:OVH) CEO Overpaid Relative To Its Peers?

Connie Mckeage became the CEO of OneVue Holdings Limited (ASX:OVH) in 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.

See our latest analysis for OneVue Holdings

How Does Connie Mckeage’s Compensation Compare With Similar Sized Companies?

Our data indicates that OneVue Holdings Limited is worth AU$62m, and total annual CEO compensation was reported as AU$339k for the year to June 2019. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$277k. We examined a group of similar sized companies, with market capitalizations of below AU$309m. The median CEO total compensation in that group is AU$390k.

Now let’s take a look at the pay mix on an industry and company level to gain a better understanding of where OneVue Holdings stands. On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. So it seems like there isn’t a significant difference between OneVue Holdings and the broader market, in terms of salary allocation in the overall compensation package.

So Connie Mckeage 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. The graphic below shows how CEO compensation at OneVue Holdings has changed from year to year.

ASX:OVH CEO Compensation May 14th 2020
ASX:OVH CEO Compensation May 14th 2020

Is OneVue Holdings Limited Growing?

Over the last three years OneVue Holdings Limited has shrunk its earnings per share by an average of 107% per year (measured with a line of best fit). Its revenue is up 16% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has OneVue Holdings Limited Been A Good Investment?

With a three year total loss of 58%, OneVue Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Connie Mckeage is paid around what is normal for the leaders of comparable size companies.

The company isn’t growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don’t think the CEO is underpaid! Moving away from CEO compensation for the moment, we’ve identified 2 warning signs for OneVue Holdings that you should be aware of before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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