Shareholders May Not Be So Generous With Saunders International Limited's (ASX:SND) CEO Compensation And Here's Why

By
Simply Wall St
Published
October 14, 2021
ASX:SND
Source: Shutterstock

Performance at Saunders International Limited (ASX:SND) has been reasonably good and CEO Mark Benson has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 20 October 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out 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$79m, and reported total annual CEO compensation of AU$1.0m for the year to June 2021. We note that's an increase of 24% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$508k.

On comparing similar-sized companies in the industry with market capitalizations below AU$272m, we found that the median total CEO compensation was AU$667k. Accordingly, our analysis reveals that Saunders International Limited pays Mark Benson north of the industry median. What's more, Mark Benson holds AU$806k worth of shares in the company in their own name.

Component20212020Proportion (2021)
Salary AU$508k AU$468k 49%
Other AU$519k AU$359k 51%
Total CompensationAU$1.0m AU$827k100%

On an industry level, roughly 77% of total compensation represents salary and 23% is other remuneration. In Saunders International's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ASX:SND CEO Compensation October 14th 2021

A Look at Saunders International Limited's Growth Numbers

Over the past three years, Saunders International Limited has seen its earnings per share (EPS) grow by 118% per year. Its revenue is up 52% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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?

Boasting a total shareholder return of 97% over three years, Saunders International 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.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Saunders International that you should be aware of before investing.

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.