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In 2014 Jefrey (Jef) Ong was appointed CEO of Flexiroam Limited (ASX:FRX). First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jefrey (Jef) Ong’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Flexiroam Limited has a market cap of AU$8.9m, and is paying total annual CEO compensation of AU$154k. (This is based on the year to March 2018). Notably, the salary of AU$150k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under AU$284m, and the median CEO total compensation was AU$354k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Flexiroam, below.
Is Flexiroam Limited Growing?
Flexiroam Limited has reduced its earnings per share by an average of 39% a year, over the last three years (measured with a line of best fit). Its revenue is up 137% over last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. It’s hard to reach a conclusion about business performance right now. This may be one to watch. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Flexiroam Limited Been A Good Investment?
With a three year total loss of 73%, Flexiroam Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Flexiroam Limited is currently paying its CEO below what is normal for companies of its size.
Jefrey (Jef) Ong is paid less than CEOs of similar size companies, but growth hasn’t been particularly impressive and the total shareholder return over three years would leave many disappointed. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. Whatever your view on compensation, you might want to check if insiders are buying or selling Flexiroam shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.