Charles Slaughter became the CEO of Reverse Corp Limited (ASX:REF) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Charles Slaughter’s Compensation Compare With Similar Sized Companies?
Our data indicates that Reverse Corp Limited is worth AU$3.0m, and total annual CEO compensation is AU$282k. (This is based on the year to 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$226k. We looked at a group of companies with market capitalizations under AU$284m, and the median CEO compensation was AU$368k.
So Charles Slaughter receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Reverse has changed from year to year.
Is Reverse Corp Limited Growing?
On average over the last three years, Reverse Corp Limited has shrunk earnings per share by 87% each year. In the last year, its revenue is up 34%.
The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. 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 could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Reverse Corp Limited Been A Good Investment?
Since shareholders would have lost about 23% 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.
Charles Slaughter is paid around what is normal the leaders of comparable size companies.
The per share growth could be better, in our view. And it’s hard to argue that the returns over the last three years have delighted. So suffice it to say we don’t think the compensation is modest! Whatever your view on compensation, you might want to check if insiders are buying or selling Reverse shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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 firstname.lastname@example.org.