The CEO of Vault Intelligence Limited (ASX:VLT) is David Moylan. 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.
How Does David Moylan’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Vault Intelligence Limited has a market cap of AU$22m, and reported total annual CEO compensation of AU$350k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$289k. We took a group of companies with market capitalizations below AU$316m, and calculated the median CEO total compensation to be AU$390k.
Next, let’s break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 67% of total compensation represents salary and 33% is other remuneration. Our data reveals that Vault Intelligence allocates salary in line with the wider market.
That means David Moylan receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance. The graphic below shows how CEO compensation at Vault Intelligence has changed from year to year.
Is Vault Intelligence Limited Growing?
Over the last three years Vault Intelligence Limited has seen earnings per share (EPS) move in a positive direction by an average of 19% per year (using a line of best fit). Its revenue is up 22% over last year.
This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Vault Intelligence Limited Been A Good Investment?
Since shareholders would have lost about 40% over three years, some Vault Intelligence Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
David Moylan is paid around what is normal for the leaders of comparable size companies.
We like that the company is growing EPS, but it’s disappointing to see negative shareholder returns over three years. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. Moving away from CEO compensation for the moment, we’ve identified 6 warning signs for Vault Intelligence 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.
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