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Mark Ryan has been the CEO of Tassal Group Limited (ASX:TGR) since 2003. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Mark Ryan’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Tassal Group Limited has a market cap of AU$874m, and is paying total annual CEO compensation of AU$1.3m. (This number is for the twelve months until June 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$762k. We examined companies with market caps from AU$570m to AU$2.3b, and discovered that the median CEO total compensation of that group was AU$1.4m.
That means Mark Ryan receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Tassal Group has changed over time.
Is Tassal Group Limited Growing?
On average over the last three years, Tassal Group Limited has grown earnings per share (EPS) by 2.8% each year (using a line of best fit). It achieved revenue growth of 17% over the last year.
This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn’t bad, either. So while we’d stop just short of calling this a top performer, but we think it is well worth watching.
Has Tassal Group Limited Been A Good Investment?
Most shareholders would probably be pleased with Tassal Group Limited for providing a total return of 35% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Mark Ryan is close enough to the median pay for a CEO of a similar sized company .
While the growth could be better, the shareholder returns are clearly good. So considering most shareholders would be happy, we’d say the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Tassal Group (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.