Cameron Fox became the CEO of Shaver Shop Group Limited (ASX:SSG) in 2008, 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.
View our latest analysis for Shaver Shop Group
How Does Total Compensation For Cameron Fox Compare With Other Companies In The Industry?
Our data indicates that Shaver Shop Group Limited has a market capitalization of AU$137m, and total annual CEO compensation was reported as AU$822k for the year to June 2020. We note that's an increase of 21% above last year. In particular, the salary of AU$500.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below AU$257m, reported a median total CEO compensation of AU$798k. This suggests that Shaver Shop Group remunerates its CEO largely in line with the industry average. Furthermore, Cameron Fox directly owns AU$4.9m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$500k | AU$550k | 61% |
| Other | AU$322k | AU$127k | 39% |
| Total Compensation | AU$822k | AU$677k | 100% |
On an industry level, roughly 58% of total compensation represents salary and 42% is other remuneration. Our data reveals that Shaver Shop Group allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Shaver Shop Group Limited's Growth Numbers
Over the past three years, Shaver Shop Group Limited has seen its earnings per share (EPS) grow by 6.6% per year. In the last year, its revenue is up 16%.
We think the revenue growth is good. And the improvement in EPSis modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Shaver Shop Group Limited Been A Good Investment?
Boasting a total shareholder return of 196% over three years, Shaver Shop Group Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
As we noted earlier, Shaver Shop Group pays its CEO in line with similar-sized companies belonging to the same industry. However, the company's EPS growth numbers over the last three years is not that impressive. At the same time, shareholder returns have remained strong over the same period. So while shareholders shouldn't be overly concerned about CEO compensation, we suspect most would prefer to see improved performance, before a bump in pay.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Shaver Shop Group that investors should look into moving forward.
Important note: Shaver Shop 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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About ASX:SSG
Shaver Shop Group
Shaver Shop Group Limited retails personal care and grooming products in Australia and New Zealand.
Flawless balance sheet, undervalued and pays a dividend.
