How Does Autosports Group's (ASX:ASG) CEO Salary Compare to Peers?

Nick Pagent has been the CEO of Autosports Group Limited (ASX:ASG) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Autosports Group.

View our latest analysis for Autosports Group

How Does Total Compensation For Nick Pagent Compare With Other Companies In The Industry?

According to our data, Autosports Group Limited has a market capitalization of AU$356m, and paid its CEO total annual compensation worth AU$616k over the year to June 2020. We note that's a decrease of 34% compared to last year. Notably, the salary which is AU$541.4k, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between AU$132m and AU$527m had a median total CEO compensation of AU$817k. This suggests that Autosports Group remunerates its CEO largely in line with the industry average. Moreover, Nick Pagent also holds AU$357k worth of Autosports Group stock directly under their own name.

On an industry level, around 58% of total compensation represents salary and 42% is other remuneration. According to our research, Autosports Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Autosports Group Limited's Growth Numbers

Over the last three years, Autosports Group Limited has shrunk its earnings per share by 121% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Autosports Group Limited Been A Good Investment?

With a three year total loss of 6.7% for the shareholders, Autosports Group Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, Nick is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Autosports Group.

Important note: Autosports Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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