Darren Stanley is the CEO of The Citadel Group Limited (ASX:CGL). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Citadel Group
How Does Darren Stanley's Compensation Compare With Similar Sized Companies?
Our data indicates that The Citadel Group Limited is worth AU$219m, and total annual CEO compensation is AU$891k. (This is based on the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$426k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$143m to AU$573m. The median total CEO compensation was AU$712k.
That means Darren Stanley receives fairly typical remuneration for the CEO of a company that size. 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 Citadel Group has changed over time.
Is The Citadel Group Limited Growing?
The Citadel Group Limited has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). It achieved revenue growth of 8.5% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
Has The Citadel Group Limited Been A Good Investment?
Given the total loss of 6.3% over three years, many shareholders in The Citadel Group Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Darren Stanley is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Citadel Group shares (free trial).
If you want to buy a stock that is better than Citadel Group, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.