The CEO of Navigator Global Investments Limited (ASX:NGI) is Sean McGould, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Sean McGould Compare With Other Companies In The Industry?
Our data indicates that Navigator Global Investments Limited has a market capitalization of AU$289m, and total annual CEO compensation was reported as US$689k for the year to June 2020. That's a notable decrease of 50% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$250k.
In comparison with other companies in the industry with market capitalizations ranging from AU$135m to AU$542m, the reported median CEO total compensation was US$564k. So it looks like Navigator Global Investments compensates Sean McGould in line with the median for the industry. What's more, Sean McGould holds AU$34m 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, around 69% of total compensation represents salary and 31% is other remuneration. Navigator Global Investments sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Navigator Global Investments Limited's Growth Numbers
Over the last three years, Navigator Global Investments Limited has not seen its earnings per share change much, though there is a slight positive movement. In the last year, its revenue is down 13%.
We would prefer it if there was revenue growth, but the modest improvement in EPS is good. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Navigator Global Investments Limited Been A Good Investment?
With a three year total loss of 30% for the shareholders, Navigator Global Investments Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As previously discussed, Sean is compensated close to the median for companies of its size, and which belong to the same industry. But with negative shareholder returns and unimpressive EPS growth, shareholders will surely be disturbed. We'd stop short of saying CEO compensation is inappropriate, but without an improvement in performance, it's sure to draw criticism. Shareholders will also not want to see performance improving before agreeing to any raise.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Navigator Global Investments that investors should be aware of in a dynamic business environment.
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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