How Is Quickstep Holdings' (ASX:QHL) CEO Paid Relative To Peers?

By
Simply Wall St
Published
February 03, 2021
ASX:QHL
Source: Shutterstock

This article will reflect on the compensation paid to Mark Burgess who has served as CEO of Quickstep Holdings Limited (ASX:QHL) since 2017. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Quickstep Holdings.

View our latest analysis for Quickstep Holdings

Comparing Quickstep Holdings Limited's CEO Compensation With the industry

According to our data, Quickstep Holdings Limited has a market capitalization of AU$64m, and paid its CEO total annual compensation worth AU$771k over the year to June 2020. Notably, that's a decrease of 13% over the year before. We note that the salary portion, which stands at AU$479.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$264m, we found that the median total CEO compensation was AU$660k. From this we gather that Mark Burgess is paid around the median for CEOs in the industry. Furthermore, Mark Burgess directly owns AU$360k worth of shares in the company.

Component20202019Proportion (2020)
Salary AU$479k AU$479k 62%
Other AU$292k AU$410k 38%
Total CompensationAU$771k AU$889k100%

On an industry level, around 51% of total compensation represents salary and 49% is other remuneration. Quickstep Holdings pays out 62% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ASX:QHL CEO Compensation February 4th 2021

Quickstep Holdings Limited's Growth

Quickstep Holdings Limited's earnings per share (EPS) grew 114% per year over the last three years. In the last year, its revenue is up 12%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Quickstep Holdings Limited Been A Good Investment?

Quickstep Holdings Limited has generated a total shareholder return of 14% 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.

To Conclude...

As we noted earlier, Quickstep Holdings pays its CEO in line with similar-sized companies belonging to the same industry. But EPS growth over the last three years has been impressive, although the same cannot be said for shareholder returns. As a result of these considerations, we would suggest the compensation is reasonable, but looking ahead shareholders will likely want to see healthier returns.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Quickstep Holdings (2 are significant!) that you should be aware of before investing here.

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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