Martin Barrett became the CEO of Auswide Bank Ltd (ASX:ABA) in 2013. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Martin Barrett’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Auswide Bank Ltd has a market cap of AU$224m, and is paying total annual CEO compensation of AU$631k. That’s a modest increase of 3.0% on the prior year year. We looked at a group of companies with market capitalizations from AU$141m to AU$565m, and the median CEO compensation was AU$810k.
So Martin Barrett receives a similar amount to the median CEO pay, amongst 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 a visual representation of the CEO compensation at Auswide Bank, below.
Is Auswide Bank Ltd Growing?
On average over the last three years, Auswide Bank Ltd has grown earnings per share (EPS) by 6.4% each year. In the last year, its revenue is up 4.2%.
I’m not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Auswide Bank Ltd Been A Good Investment?
Auswide Bank Ltd has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Remuneration for Martin Barrett is close enough to the median pay for a CEO of a similar sized company .
We see room for improved growth, as well as fairly unremarkable returns over the last three years. While the CEO may not be underpaid, we don’t think the pay is too generous either. Whatever your view on compensation, you might want to check if insiders are buying or selling Auswide Bank Ltd shares (free trial).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.