A Quick Analysis On Boom Logistics' (ASX:BOL) CEO Salary

Tony Spassopoulos became the CEO of Boom Logistics Limited (ASX:BOL) in 2018, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Boom Logistics.

See our latest analysis for Boom Logistics

How Does Total Compensation For Tony Spassopoulos Compare With Other Companies In The Industry?

According to our data, Boom Logistics Limited has a market capitalization of AU$60m, and paid its CEO total annual compensation worth AU$651k over the year to June 2020. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at AU$408.8k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under AU$259m, the reported median total CEO compensation was AU$497k. Hence, we can conclude that Tony Spassopoulos is remunerated higher than the industry median. What's more, Tony Spassopoulos holds AU$225k worth of shares in the company in their own name.

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. Our data reveals that Boom Logistics allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Boom Logistics Limited's Growth Numbers

Boom Logistics Limited has reduced its earnings per share by 51% a year over the last three years. In the last year, its revenue is down 5.5%.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Boom Logistics Limited Been A Good Investment?

Given the total shareholder loss of 16% over three years, many shareholders in Boom Logistics Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we touched on above, Boom Logistics Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. To make matters worse, EPS growth has also been negative during this period. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Boom Logistics that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. 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.
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