Dominic O’Hanlon has been the CEO of rhipe Limited (ASX:RHP) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Dominic O’Hanlon’s Compensation Compare With Similar Sized Companies?
Our data indicates that rhipe Limited is worth AU$249m, and total annual CEO compensation is AU$1.1m. (This figure is for the year to June 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$477k. When we examined a selection of companies with market caps ranging from AU$141m to AU$564m, we found the median CEO total compensation was AU$748k.
Thus we can conclude that Dominic O’Hanlon receives more in total compensation than the median of a group of companies in the same market, and of similar size to rhipe Limited. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at rhipe, below.
Is rhipe Limited Growing?
rhipe Limited has increased its earnings per share (EPS) by an average of 94% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 100%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has rhipe Limited Been A Good Investment?
Most shareholders would probably be pleased with rhipe Limited for providing a total return of 48% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared total CEO remuneration at rhipe Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at rhipe.
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If you spot an error that warrants correction, please contact the editor at email@example.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.