What Can We Conclude About Omni Bridgeway's (ASX:OBL) CEO Pay?

This article will reflect on the compensation paid to Andrew Saker who has served as CEO of Omni Bridgeway Limited (ASX:OBL) since 2015. This analysis will also assess whether Omni Bridgeway pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Omni Bridgeway

How Does Total Compensation For Andrew Saker Compare With Other Companies In The Industry?

According to our data, Omni Bridgeway Limited has a market capitalization of AU$962m, and paid its CEO total annual compensation worth AU$2.3m over the year to June 2020. Notably, that's an increase of 20% over the year before. We note that the salary portion, which stands at AU$1.23m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the industry with market capitalizations between AU$516m and AU$2.1b, we discovered that the median CEO total compensation of that group was AU$1.9m. This suggests that Omni Bridgeway remunerates its CEO largely in line with the industry average. Furthermore, Andrew Saker directly owns AU$668k worth of shares in the company.

On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. Omni Bridgeway pays a modest slice of remuneration through salary, as compared to the broader 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 Omni Bridgeway Limited's Growth Numbers

Over the last three years, Omni Bridgeway Limited has shrunk its earnings per share by 68% per year. Its revenue is up 515% over the last year.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Omni Bridgeway Limited Been A Good Investment?

With a total shareholder return of 20% over three years, Omni Bridgeway Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As we noted earlier, Omni Bridgeway pays its CEO in line with similar-sized companies belonging to the same industry. But revenue growth for the company has been quite positive recently. That's why we were hoping for more robust shareholder returns at this time. EPS growth is a further sore spot — the metric is negative over the last three years. But we don't think the CEO compensation is a problem, although shareholders might want to see more growth before agreeing that Andrew should get a raise.

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 2 warning signs for Omni Bridgeway that you should be aware of before investing.

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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