Here's What We Learned About The CEO Pay At Alliance Aviation Services Limited (ASX:AQZ)

This article will reflect on the compensation paid to Lee Schofield who has served as CEO of Alliance Aviation Services Limited (ASX:AQZ) since 2015. This analysis will also assess whether Alliance Aviation Services pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Alliance Aviation Services

Comparing Alliance Aviation Services Limited's CEO Compensation With the industry

According to our data, Alliance Aviation Services Limited has a market capitalization of AU$616m, and paid its CEO total annual compensation worth AU$653k over the year to June 2020. We note that's an increase of 28% above last year. We note that the salary portion, which stands at AU$387.6k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the industry with market capitalizations between AU$260m and AU$1.0b, we discovered that the median CEO total compensation of that group was AU$1.1m. That is to say, Lee Schofield is paid under the industry median. What's more, Lee Schofield holds AU$557k worth of shares in the company in their own name.

On an industry level, roughly 33% of total compensation represents salary and 67% is other remuneration. According to our research, Alliance Aviation Services has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Alliance Aviation Services Limited's Growth

Alliance Aviation Services Limited has seen its earnings per share (EPS) increase by 4.7% a year over the past three years. Its revenue is up 7.7% over the last year.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Alliance Aviation Services Limited Been A Good Investment?

Boasting a total shareholder return of 132% over three years, Alliance Aviation Services Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As we touched on above, Alliance Aviation Services Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, shareholder returns have been have been very pleasing, over the last three years, and that should put a smile on the faces of investors. As a result of the juicy return to investors, CEO compensation may well be quite reasonable.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Alliance Aviation Services that you should be aware of before investing.

Important note: Alliance Aviation Services is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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. 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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