Wayne Jones is the CEO of Indoor Skydive Australia Group Limited (ASX:IDZ), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Indoor Skydive Australia Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Indoor Skydive Australia Group
How Does Total Compensation For Wayne Jones Compare With Other Companies In The Industry?
According to our data, Indoor Skydive Australia Group Limited has a market capitalization of AU$2.0m, and paid its CEO total annual compensation worth AU$211k over the year to June 2020. We note that's a decrease of 17% compared to last year. Notably, the salary which is AU$187.4k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below AU$279m, we found that the median total CEO compensation was AU$544k. Accordingly, Indoor Skydive Australia Group pays its CEO under the industry median. Moreover, Wayne Jones also holds AU$93k worth of Indoor Skydive Australia Group stock directly under their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$187k | AU$219k | 89% |
| Other | AU$23k | AU$34k | 11% |
| Total Compensation | AU$211k | AU$253k | 100% |
Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. According to our research, Indoor Skydive Australia Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Indoor Skydive Australia Group Limited's Growth
Indoor Skydive Australia Group Limited's earnings per share (EPS) grew 5.6% per year over the last three years. Its revenue is down 33% over the previous year.
We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Indoor Skydive Australia Group Limited Been A Good Investment?
Given the total shareholder loss of 97% over three years, many shareholders in Indoor Skydive Australia Group Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.