Stock Analysis

We Take A Look At Why LaserBond Limited's (ASX:LBL) CEO Has Earned Their Pay Packet

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The performance at LaserBond Limited (ASX:LBL) has been quite strong recently and CEO Wayne Hooper has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 04 November 2021. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for LaserBond

How Does Total Compensation For Wayne Hooper Compare With Other Companies In The Industry?

Our data indicates that LaserBond Limited has a market capitalization of AU$85m, and total annual CEO compensation was reported as AU$352k for the year to June 2021. That is, the compensation was roughly the same as last year. Notably, the salary which is AU$326.9k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under AU$267m, the reported median total CEO compensation was AU$367k. So it looks like LaserBond compensates Wayne Hooper in line with the median for the industry. Moreover, Wayne Hooper also holds AU$9.7m worth of LaserBond stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20212020Proportion (2021)
Salary AU$327k AU$323k 93%
Other AU$25k AU$25k 7%
Total CompensationAU$352k AU$348k100%

On an industry level, around 76% of total compensation represents salary and 24% is other remuneration. LaserBond is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ASX:LBL CEO Compensation October 29th 2021

LaserBond Limited's Growth

LaserBond Limited has seen its earnings per share (EPS) increase by 42% a year over the past three years. In the last year, its revenue is up 11%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has LaserBond Limited Been A Good Investment?

Boasting a total shareholder return of 335% over three years, LaserBond Limited has done well by shareholders. 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.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for LaserBond that investors should look into moving forward.

Important note: LaserBond is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Valuation is complex, but we're helping make it simple.

Find out whether LaserBond is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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