In This Article:
The CEO of Flight Centre Travel Group Limited (ASX:FLT) is Skroo Turner. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Flight Centre Travel Group
How Does Skroo Turner's Compensation Compare With Similar Sized Companies?
Our data indicates that Flight Centre Travel Group Limited is worth AU$4.0b, and total annual CEO compensation was reported as AU$517k for the year to June 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$654k. We examined companies with market caps from AU$3.0b to AU$9.6b, and discovered that the median CEO total compensation of that group was AU$3.2m.
A first glance this seems like a real positive for shareholders, since Skroo Turner is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Flight Centre Travel Group, below.
Is Flight Centre Travel Group Limited Growing?
Over the last three years Flight Centre Travel Group Limited has grown its earnings per share (EPS) by an average of 5.8% per year (using a line of best fit). Its revenue is up 4.5% over last year.
I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. 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 Flight Centre Travel Group Limited Been A Good Investment?
Most shareholders would probably be pleased with Flight Centre Travel Group Limited for providing a total return of 55% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
It looks like Flight Centre Travel Group Limited pays its CEO less than similar sized companies.
Skroo Turner receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. Shareholders may want to check for free if Flight Centre Travel Group insiders are buying or selling shares.