The CEO of Indoor Skydive Australia Group Limited (ASX:IDZ) is Wayne Jones, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Indoor Skydive Australia Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Indoor Skydive Australia Group
How Does Total Compensation For Wayne Jones Compare With Other Companies In The Industry?
Our data indicates that Indoor Skydive Australia Group Limited has a market capitalization of AU$4.4m, and total annual CEO compensation was reported as AU$211k for the year to June 2020. Notably, that's a decrease of 17% over the year before. We note that the salary portion, which stands at AU$187.4k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under AU$260m, the reported median total CEO compensation was AU$564k. That is to say, Wayne Jones is paid under the industry median. What's more, Wayne Jones holds AU$202k worth of shares in the company in their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$187k | AU$219k | 89% |
| Other | AU$23k | AU$34k | 11% |
| Total Compensation | AU$211k | AU$253k | 100% |
Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. According to our research, Indoor Skydive Australia Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Indoor Skydive Australia Group Limited's Growth Numbers
Over the past three years, Indoor Skydive Australia Group Limited has seen its earnings per share (EPS) grow by 5.6% per year. It saw its revenue drop 33% over the last year.
We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Indoor Skydive Australia Group Limited Been A Good Investment?
With a three year total loss of 93% for the shareholders, Indoor Skydive Australia Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
As previously discussed, Wayne is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. But then, EPS growth is lacking and so are the returns to shareholders. We're not critical of the remuneration Wayne receives, but it would be good to see improved returns to shareholders before compensation grows too much.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 6 warning signs for Indoor Skydive Australia Group (3 are a bit concerning!) that you should be aware of before investing here.
Important note: Indoor Skydive Australia Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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Access Free AnalysisThis 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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About ASX:XRG
xReality Group
Owns and operates indoor skydiving facilities in the Asia Pacific and the United States.
Moderate with weak fundamentals.
