Should You Worry About Threat Protect Australia Limited’s (ASX:TPS) CEO Pay?

In 2015 Demetrios Pynes was appointed CEO of Threat Protect Australia Limited (ASX:TPS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Threat Protect Australia

How Does Demetrios Pynes’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Threat Protect Australia Limited has a market cap of AU$24m, and is paying total annual CEO compensation of AU$434k. (This number is for the twelve months until 2018). We note that’s an increase of 113% above last year. We think total compensation is more important but we note that the CEO salary is lower, at AU$245k. We took a group of companies with market capitalizations below AU$279m, and calculated the median CEO compensation to be AU$365k.

That means Demetrios Pynes receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Threat Protect Australia, below.

ASX:TPS CEO Compensation December 20th 18
ASX:TPS CEO Compensation December 20th 18

Is Threat Protect Australia Limited Growing?

Threat Protect Australia Limited has increased its earnings per share (EPS) by an average of 98% a year, over the last three years In the last year, its revenue is up 28%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.

Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Threat Protect Australia Limited Been A Good Investment?

Given the total loss of 22% over three years, many shareholders in Threat Protect Australia Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Demetrios Pynes is paid around the same as most CEOs of similar size companies.

We like that the company is growing EPS, but it’s disappointing to see negative shareholder returns over three years. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Threat Protect Australia.

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.