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Rod Sherwood has been the CEO of CV Check Ltd (ASX:CV1) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.
Check out our latest analysis for CV Check
How Does Rod Sherwood's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that CV Check Ltd has a market cap of AU$51m, and is paying total annual CEO compensation of AU$331k. (This is based on the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$272k. We looked at a group of companies with market capitalizations under AU$289m, and the median CEO total compensation was AU$358k.
So Rod Sherwood 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 CV Check has changed over time.
Is CV Check Ltd Growing?
CV Check Ltd has increased its earnings per share (EPS) by an average of 72% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 14%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has CV Check Ltd Been A Good Investment?
With a total shareholder return of 0.7% over three years, CV Check Ltd has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Remuneration for Rod Sherwood 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. So upon reflection one could argue that the CEO pay is quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CV Check (free visualization of insider trades).