Glenn Fielding became the CEO of PS&C Limited (ASX:PSZ) in 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Glenn Fielding’s Compensation Compare With Similar Sized Companies?
According to our data, PS&C Limited has a market capitalization of AU$19m, and pays its CEO total annual compensation worth AU$347k. (This figure is for the year to June 2018). Notably, the salary of AU$347k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under AU$200m, and the median CEO total compensation was AU$240k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at PS&C has changed over time.
Is PS&C Limited Growing?
PS&C Limited has reduced its earnings per share by an average of 105% a year, over the last three years (measured with a line of best fit). Its revenue is up 41% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. It’s hard to reach a conclusion about business performance right now. This may be one to watch.
Has PS&C Limited Been A Good Investment?
With a three year total loss of 81%, PS&C Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
It looks like PS&C Limited pays its CEO less than similar sized companies.
Glenn Fielding receives relatively low remuneration compared to similar sized companies. But the company isn’t exactly firing on all cylinders, and returns over three years are not good. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at PS&C.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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