Charles Slaughter became the CEO of Reverse Corp Limited (ASX:REF) in 2012. 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 Charles Slaughter’s Compensation Compare With Similar Sized Companies?
According to our data, Reverse Corp Limited has a market capitalization of AU$2.0m, and pays its CEO total annual compensation worth AU$282k. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$226k. We took a group of companies with market capitalizations below AU$279m, and calculated the median CEO total compensation to be AU$354k.
That means Charles Slaughter receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Reverse, below.
Is Reverse Corp Limited Growing?
Over the last three years Reverse Corp Limited has shrunk its earnings per share by an average of 113% per year (measured with a line of best fit). It achieved revenue growth of 53% over the last year.
Investors should note that, over three years, earnings per share are down. 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. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Reverse Corp Limited Been A Good Investment?
Since shareholders would have lost about 37% over three years, some Reverse Corp Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Charles Slaughter is close enough to the median pay for a CEO of a similar sized company .
We would like to see somewhat stronger per share growth. And shareholder returns have been disappointing over the last three years. So suffice it to say we don’t think the compensation is modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Reverse (free visualization of insider trades).
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.
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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.