Jefrey (Jef) Ong has been the CEO of Flexiroam Limited (ASX:FRX) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
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$13m, and is paying total annual CEO compensation of AU$154k. We took a group of companies with market capitalizations below AU$276m, and calculated the median CEO compensation to be AU$364k.
Most shareholders would consider it a positive that Jefrey (Jef) Ong takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Flexiroam has changed over time.
Is Flexiroam Limited Growing?
On average over the last three years, Flexiroam Limited has shrunk earnings per share by 25% each year. Its revenue is up 46% over last year.
As investors, we do are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. Although we don’t have analyst forecasts, you might want to assess this free data-rich visualization of earnings, revenue and cash flow.
Has Flexiroam Limited Been A Good Investment?
With a three year total loss of 70%, Flexiroam Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
It appears that Flexiroam Limited remunerates its CEO below most similar sized companies.
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. So while shareholders shouldn’t be overly concerned about CEO compensation, they would probably like to see improved shareholder returns before seeing a pay increase.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.com.