This article will reflect on the compensation paid to Cameron Fox who has served as CEO of Shaver Shop Group Limited (ASX:SSG) since 2008. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Cameron Fox Compare With Other Companies In The Industry?
At the time of writing, our data shows that Shaver Shop Group Limited has a market capitalization of AU$106m, and reported total annual CEO compensation of AU$822k for the year to June 2020. We note that's an increase of 21% above last year. Notably, the salary which is AU$500.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below AU$278m, we found that the median total CEO compensation was AU$797k. This suggests that Shaver Shop Group remunerates its CEO largely in line with the industry average. What's more, Cameron Fox holds AU$3.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. Although there is a difference in how total compensation is set, Shaver Shop Group more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Shaver Shop Group Limited's Growth Numbers
Shaver Shop Group Limited's earnings per share (EPS) grew 6.6% per year over the last three years. In the last year, its revenue is up 16%.
We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Shaver Shop Group Limited Been A Good Investment?
We think that the total shareholder return of 80%, over three years, would leave most Shaver Shop Group Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
As we touched on above, Shaver Shop Group Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the company's EPS growth numbers over the last three years is not that impressive. On the other hand, shareholder returns over the same period have been very healthy. There is room for improved company performance, but we don't see the CEO compensation as a big issue here.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 4 warning signs for Shaver Shop Group that you should be aware of before investing.
Switching gears from Shaver Shop 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.
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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