How Should Investors React To CPT Global Limited's (ASX:CGO) CEO Pay?

In 2004 Gerry Tuddenham was appointed CEO of CPT Global Limited (ASX:CGO). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for CPT Global

How Does Gerry Tuddenham's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that CPT Global Limited has a market cap of AU$6m, and is paying total annual CEO compensation of AU$416k. That's below the compensation, last year. We took a group of companies with market capitalizations below AU$278m, and calculated the median CEO compensation to be AU$354k.

So Gerry Tuddenham receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at CPT Global has changed over time.

Is CPT Global Limited Growing?

On average over the last three years, CPT Global Limited has grown earnings per share (EPS) by 75% each year. Its revenue is up 14% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

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 CPT Global Limited Been A Good Investment?

Given the total loss of 49% over three years, many shareholders in CPT Global Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Gerry Tuddenham is paid around what is normal the leaders of comparable size companies.

We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CPT Global Limited (free visualization of insider trades).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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 editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.