How Much Is Saunders International Limited (ASX:SND) CEO Getting Paid?

This article will reflect on the compensation paid to Mark Benson who has served as CEO of Saunders International Limited (ASX:SND) since 2015. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Saunders International.

View our latest analysis for Saunders International

How Does Total Compensation For Mark Benson Compare With Other Companies In The Industry?

At the time of writing, our data shows that Saunders International Limited has a market capitalization of AU$65m, and reported total annual CEO compensation of AU$827k for the year to June 2020. We note that's an increase of 24% above last year. Notably, the salary which is AU$468.1k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below AU$262m, we found that the median total CEO compensation was AU$675k. This suggests that Saunders International remunerates its CEO largely in line with the industry average. What's more, Mark Benson holds AU$670k worth of shares in the company in their own name.

On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. Saunders International sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Saunders International Limited's Growth Numbers

Over the last three years, Saunders International Limited has shrunk its earnings per share by 11% per year. Its revenue is up 33% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Saunders International Limited Been A Good Investment?

Saunders International Limited has not done too badly by shareholders, with a total return of 8.6%, over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

As previously discussed, Mark is compensated close to the median for companies of its size, and which belong to the same industry. But revenue growth over the last year can't be ignored. Shareholder returns, in comparison, have not been as impressive during the same period. EPS growth is a further sore spot — the metric is negative over the last three years. But we don't think the CEO compensation is a problem, although shareholders might want to see more growth before agreeing that Mark should get a raise.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Saunders International that investors should look into moving forward.

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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