Here's What We Learned About The CEO Pay At TasFoods Limited (ASX:TFL)

This article will reflect on the compensation paid to Jane Bennett who has served as CEO of TasFoods Limited (ASX:TFL) since 2015. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for TasFoods

Comparing TasFoods Limited's CEO Compensation With the industry

Our data indicates that TasFoods Limited has a market capitalization of AU$42m, and total annual CEO compensation was reported as AU$300k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at AU$240.1k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under AU$262m, the reported median total CEO compensation was AU$363k. This suggests that TasFoods remunerates its CEO largely in line with the industry average. Moreover, Jane Bennett also holds AU$397k worth of TasFoods stock directly under their own name.

On an industry level, around 80% of total compensation represents salary and 20% is other remuneration. Our data reveals that TasFoods allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at TasFoods Limited's Growth Numbers

TasFoods Limited has seen its earnings per share (EPS) increase by 18% a year over the past three years. It achieved revenue growth of 52% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has TasFoods Limited Been A Good Investment?

Given the total shareholder loss of 32% over three years, many shareholders in TasFoods Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we touched on above, TasFoods Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. At the same time, the company has logged negative shareholder returns over the last three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Overall, we wouldn't say Jane is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 2 which are significant) in TasFoods we think you should know about.

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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