Is Syntonic Limited's (ASX:SYT) CEO Paid Enough Relative To Peers?
Gary Greenbaum became the CEO of Syntonic Limited (ASX:SYT) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Syntonic
How Does Gary Greenbaum's Compensation Compare With Similar Sized Companies?
According to our data, Syntonic Limited has a market capitalization of AU$6.9m, and paid its CEO total annual compensation worth AU$360k over the year to June 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$360k. We examined a group of similar sized companies, with market capitalizations of below AU$299m. The median CEO total compensation in that group is AU$378k.
So Gary Greenbaum is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Syntonic has changed from year to year.
Is Syntonic Limited Growing?
Over the last three years Syntonic Limited has grown its earnings per share (EPS) by an average of 59% per year (using a line of best fit). It achieved revenue growth of 315% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Syntonic Limited Been A Good Investment?
With a three year total loss of 96%, Syntonic Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Remuneration for Gary Greenbaum is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. So you may want to check if insiders are buying Syntonic shares with their own money (free access).
Important note: Syntonic may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
