A Quick Analysis On Breville Group's (ASX:BRG) CEO Compensation

This article will reflect on the compensation paid to Jim Clayton who has served as CEO of Breville Group Limited (ASX:BRG) since 2015. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Breville Group.

See our latest analysis for Breville Group

How Does Total Compensation For Jim Clayton Compare With Other Companies In The Industry?

At the time of writing, our data shows that Breville Group Limited has a market capitalization of AU$3.3b, and reported total annual CEO compensation of AU$2.3m for the year to June 2020. We note that's an increase of 13% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$889k.

On examining similar-sized companies in the industry with market capitalizations between AU$2.7b and AU$8.5b, we discovered that the median CEO total compensation of that group was AU$4.9m. That is to say, Jim Clayton is paid under the industry median. What's more, Jim Clayton holds AU$8.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. Breville Group pays a modest slice of remuneration through salary, as compared 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.

Breville Group Limited's Growth

Over the past three years, Breville Group Limited has seen its earnings per share (EPS) grow by 6.9% per year. It achieved revenue growth of 25% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. 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 Breville Group Limited Been A Good Investment?

We think that the total shareholder return of 101%, over three years, would leave most Breville Group Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we noted earlier, Breville Group pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However, shareholder returns are rock solid over the past three years, and that’s undoubtedly a good sign. Considering this fine result for investors, we believe CEO compensation to be apt.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Breville Group that you should be aware of before investing.

Switching gears from Breville Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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