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In 1996 Robert Kelly was appointed CEO of Steadfast Group Limited (ASX:SDF). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Robert Kelly’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Steadfast Group Limited has a market cap of AU$2.0b, and is paying total annual CEO compensation of AU$3.1m. (This number is for the twelve months until 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$974k. We examined companies with market caps from AU$1.4b to AU$4.4b, and discovered that the median CEO compensation of that group was AU$2.4m.
So Robert Kelly is paid around the average of the companies we looked at. 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 Steadfast Group has changed over time.
Is Steadfast Group Limited Growing?
Over the last three years Steadfast Group Limited has grown its earnings per share (EPS) by an average of 1.7% per year (using a line of best fit). In the last year, its revenue is up 14%.
This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. So while we’d stop just short of calling this a top performer, but we think it is well worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Steadfast Group Limited Been A Good Investment?
Boasting a total shareholder return of 91% over three years, Steadfast Group Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Robert Kelly is paid around the same as most CEOs of similar size companies.
While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. So you may want to check if insiders are buying Steadfast Group shares with their own money (free access).
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.