This article will reflect on the compensation paid to Craig Herbison who has served as CEO of Plexure Group Limited (NZSE:PLX) since 2017. This analysis will also assess whether Plexure Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Plexure Group
How Does Total Compensation For Craig Herbison Compare With Other Companies In The Industry?
Our data indicates that Plexure Group Limited has a market capitalization of NZ$209m, and total annual CEO compensation was reported as NZ$717k for the year to March 2020. That's a notable increase of 57% on last year. Notably, the salary of NZ$717k is the entirety of the CEO compensation.
For comparison, other companies in the industry with market capitalizations below NZ$303m, reported a median total CEO compensation of NZ$376k. Accordingly, our analysis reveals that Plexure Group Limited pays Craig Herbison north of the industry median.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | NZ$717k | NZ$457k | 100% |
| Other | - | - | - |
| Total Compensation | NZ$717k | NZ$457k | 100% |
On an industry level, roughly 67% of total compensation represents salary and 33% is other remuneration. At the company level, Plexure Group pays Craig Herbison solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Plexure Group Limited's Growth
Plexure Group Limited has seen its earnings per share (EPS) increase by 112% a year over the past three years. It achieved revenue growth of 50% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Plexure Group Limited Been A Good Investment?
Most shareholders would probably be pleased with Plexure Group Limited for providing a total return of 1,133% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Plexure Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Plexure Group Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, Plexure Group has produced strong earnings growth and shareholder returns over the last three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. And given most shareholders are probably very happy with recent returns, they might even think that Craig deserves a raise!
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. We've identified 1 warning sign for Plexure Group that investors should be aware of in a dynamic business environment.
Switching gears from Plexure Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
If you’re looking to trade Plexure Group, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
Valuation is complex, but we're here to simplify it.
Discover if TASK Group Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisThis 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.