In 2016 Anthony Nantes was appointed CEO of Wisr Limited (ASX:WZR). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
How Does Anthony Nantes’s Compensation Compare With Similar Sized Companies?
According to our data, Wisr Limited has a market capitalization of AU$102m, and pays its CEO total annual compensation worth AU$634k. (This is based on the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$250k. We took a group of companies with market capitalizations below AU$297m, and calculated the median CEO total compensation to be AU$362k.
It would therefore appear that Wisr Limited pays Anthony Nantes 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Wisr, below.
Is Wisr Limited Growing?
Over the last three years Wisr Limited has grown its earnings per share (EPS) by an average of 27% per year (using a line of best fit). Its revenue is up 116% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
Has Wisr Limited Been A Good Investment?
Most shareholders would probably be pleased with Wisr Limited for providing a total return of 303% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared total CEO remuneration at Wisr Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Wisr.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.