How Much Is 360 Capital Group's (ASX:TGP) CEO Getting Paid?

Tony Pitt became the CEO of 360 Capital Group Limited (ASX:TGP) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Note: The company does not report funds from operations, and as a result, we have used earnings per share in our analysis.

View our latest analysis for 360 Capital Group

How Does Total Compensation For Tony Pitt Compare With Other Companies In The Industry?

According to our data, 360 Capital Group Limited has a market capitalization of AU$198m, and paid its CEO total annual compensation worth AU$805k over the year to June 2020. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at AU$578.8k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from AU$130m to AU$521m, we found that the median CEO total compensation was AU$609k. Accordingly, our analysis reveals that 360 Capital Group Limited pays Tony Pitt north of the industry median. What's more, Tony Pitt holds AU$62m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	AU$579k	AU$548k	72%
Other	AU$227k	AU$247k	28%
Total Compensation	AU$805k	AU$796k	100%

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. It's interesting to note that 360 Capital Group pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

360 Capital Group Limited's Growth

Over the last three years, 360 Capital Group Limited has shrunk its earnings per share by 72% per year. It achieved revenue growth of 30% over the last year.

The decrease in EPS could be a concern for some investors. 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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has 360 Capital Group Limited Been A Good Investment?

With a total shareholder return of 2.2% over three years, 360 Capital Group Limited has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

As previously discussed, Tony is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Be that as it may, revenue figures are showing some positive trends recently. Shareholder returns have also grown during this time, but haven't been as impressive. EPS growth, meanwhile, has been negative. While the CEO may not be underpaid, we don't think the pay is too generous either.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for 360 Capital Group you should be aware of, and 1 of them shouldn't be ignored.

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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