Increases to Urbanise.com Limited's (ASX:UBN) CEO Compensation Might Cool off for now

Under the guidance of CEO Saurabh Jain, Urbanise.com Limited (ASX:UBN) has performed reasonably well recently. As shareholders go into the upcoming AGM on 24 November 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Urbanise.com

How Does Total Compensation For Saurabh Jain Compare With Other Companies In The Industry?

According to our data, Urbanise.com Limited has a market capitalization of AU$67m, and paid its CEO total annual compensation worth AU$701k over the year to June 2021. That's mostly flat as compared to the prior year's compensation. We note that the salary of AU$386.5k makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$273m, we found that the median total CEO compensation was AU$412k. Accordingly, our analysis reveals that Urbanise.com Limited pays Saurabh Jain north of the industry median. Furthermore, Saurabh Jain directly owns AU$408k worth of shares in the company.

Component	2021	2020	Proportion (2021)
Salary	AU$386k	AU$382k	55%
Other	AU$315k	AU$305k	45%
Total Compensation	AU$701k	AU$687k	100%

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. It's interesting to note that Urbanise.com allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Urbanise.com Limited's Growth Numbers

Urbanise.com Limited has seen its earnings per share (EPS) increase by 93% a year over the past three years. Its revenue is up 19% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Urbanise.com Limited Been A Good Investment?

Most shareholders would probably be pleased with Urbanise.com Limited for providing a total return of 72% 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.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Urbanise.com that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.

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