Does Patrys Limited's (ASX:PAB) CEO Pay Compare Well With Peers?

In This Article:

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

In 2015 James Campbell was appointed CEO of Patrys Limited (ASX:PAB). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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 Patrys

How Does James Campbell's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Patrys Limited has a market cap of AU$25m, and is paying total annual CEO compensation of AU$399k. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$280k. We looked at a group of companies with market capitalizations under AU$285m, and the median CEO total compensation was AU$354k.

That means James Campbell receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Patrys, below.

ASX:PAB CEO Compensation, July 18th 2019
ASX:PAB CEO Compensation, July 18th 2019

Is Patrys Limited Growing?

Patrys Limited has increased its earnings per share (EPS) by an average of 54% a year, over the last three years (using a line of best fit). Its revenue is up 18% over last year.

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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Patrys Limited Been A Good Investment?

I think that the total shareholder return of 255%, over three years, would leave most Patrys Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

James Campbell is paid around the same as most CEOs of similar size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Patrys.