What Can We Learn About CardieX's (ASX:CDX) CEO Compensation?

By
Simply Wall St
Published
February 16, 2021
ASX:CDX

This article will reflect on the compensation paid to Craig Cooper who has served as CEO of CardieX Limited (ASX:CDX) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for CardieX

Comparing CardieX Limited's CEO Compensation With the industry

According to our data, CardieX Limited has a market capitalization of AU$68m, and paid its CEO total annual compensation worth AU$911k over the year to June 2020. That's just a smallish increase of 7.1% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$447k.

For comparison, other companies in the industry with market capitalizations below AU$257m, reported a median total CEO compensation of AU$588k. Accordingly, our analysis reveals that CardieX Limited pays Craig Cooper north of the industry median.

Component20202019Proportion (2020)
Salary AU$447k AU$419k 49%
Other AU$464k AU$432k 51%
Total CompensationAU$911k AU$851k100%

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. In CardieX's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ASX:CDX CEO Compensation February 16th 2021

A Look at CardieX Limited's Growth Numbers

CardieX Limited's earnings per share (EPS) grew 53% per year over the last three years. Its revenue is up 7.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has CardieX Limited Been A Good Investment?

Most shareholders would probably be pleased with CardieX Limited for providing a total return of 167% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As previously discussed, Craig is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. Given the strong history of shareholder returns, the shareholders are probably very happy with Craig's performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 4 warning signs for CardieX that investors should look into moving forward.

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.

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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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