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Ross Shrimpton has been the CEO of Ashley Services Group Limited (ASX:ASH) since 2017. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Ross Shrimpton’s Compensation Compare With Similar Sized Companies?
According to our data, Ashley Services Group Limited has a market capitalization of AU$40m, and pays its CEO total annual compensation worth AU$300k. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$280k. We examined a group of similar sized companies, with market capitalizations of below AU$285m. The median CEO total compensation in that group is AU$354k.
That means Ross Shrimpton receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Ashley Services Group, below.
Is Ashley Services Group Limited Growing?
Over the last three years Ashley Services Group Limited has grown its earnings per share (EPS) by an average of 137% per year (using a line of best fit). It saw its revenue drop -3.1% over the last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end.
Has Ashley Services Group Limited Been A Good Investment?
Most shareholders would probably be pleased with Ashley Services Group Limited for providing a total return of 50% over three years. 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.
Remuneration for Ross Shrimpton is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Ashley Services Group shares with their own money (free access).
Important note: Ashley Services Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.