Graham Maxwell has been the CEO of Collins Foods Limited (ASX:CKF) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Collins Foods

How Does Graham Maxwell's Compensation Compare With Similar Sized Companies?

According to our data, Collins Foods Limited has a market capitalization of AU$1.1b, and paid its CEO total annual compensation worth AU$1.5m over the year to April 2019. While we always look at total compensation first, we note that the salary component is less, at AU$831k. We examined companies with market caps from AU$603m to AU$2.4b, and discovered that the median CEO total compensation of that group was AU$1.4m.

So Graham Maxwell 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.

You can see, below, how CEO compensation at Collins Foods has changed over time.

Is Collins Foods Limited Growing?

Over the last three years Collins Foods Limited has grown its earnings per share (EPS) by an average of 6.5% per year (using a line of best fit). It achieved revenue growth of 9.3% over the last year.

I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.

Has Collins Foods Limited Been A Good Investment?

Boasting a total shareholder return of 84% over three years, Collins Foods Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Remuneration for Graham Maxwell is close enough to the median pay for a CEO of a similar sized company .

While the growth could be better, the shareholder returns are clearly good. So all things considered I'd venture that the CEO pay is appropriate. So you may want to check if insiders are buying Collins Foods shares with their own money (free access).

If you want to buy a stock that is better than Collins Foods, this free list of high return, low debt companies is a great place to look.

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.

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