How Much Did Freelancer's (ASX:FLN) CEO Pocket Last Year?

Matt Barrie is the CEO of Freelancer Limited (ASX:FLN), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Freelancer pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Freelancer

How Does Total Compensation For Matt Barrie Compare With Other Companies In The Industry?

Our data indicates that Freelancer Limited has a market capitalization of AU$213m, and total annual CEO compensation was reported as AU$602k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is AU$569.1k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from AU$132m to AU$529m, we found that the median CEO total compensation was AU$826k. This suggests that Freelancer remunerates its CEO largely in line with the industry average. Furthermore, Matt Barrie directly owns AU$93m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. Freelancer pays out 94% 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.

A Look at Freelancer Limited's Growth Numbers

Freelancer Limited has seen its earnings per share (EPS) increase by 24% a year over the past three years. In the last year, its revenue is up 5.5%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Freelancer Limited Been A Good Investment?

Since shareholders would have lost about 5.1% over three years, some Freelancer Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, Freelancer pays its CEO in line with similar-sized companies belonging to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. But on the bright side, EPS growth is positive over the same period. Overall, we wouldn't say Matt is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

So you may want to check if insiders are buying Freelancer shares with their own money (free access).

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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