Klaus Bartosch is the CEO of 1st Group Limited (ASX:1ST). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for 1st Group
How Does Klaus Bartosch's Compensation Compare With Similar Sized Companies?
According to our data, 1st Group Limited has a market capitalization of AU$32m, and paid its CEO total annual compensation worth AU$413k over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$289k. We took a group of companies with market capitalizations below AU$296m, and calculated the median CEO total compensation to be AU$385k.
So Klaus Bartosch 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 1st Group has changed from year to year.
Is 1st Group Limited Growing?
1st Group Limited has increased its earnings per share (EPS) by an average of 35% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 16%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has 1st Group Limited Been A Good Investment?
1st Group Limited has served shareholders reasonably well, with a total return of 28% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Remuneration for Klaus Bartosch is close enough to the median pay for a CEO of a similar sized company .
The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling 1st Group (free visualization of insider trades).