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Bill Yde became the CEO of GTN Limited (ASX:GTN) in 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for GTN
How Does Bill Yde's Compensation Compare With Similar Sized Companies?
Our data indicates that GTN Limited is worth AU$240m, and total annual CEO compensation is AU$1.5m. (This figure is for the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$880k. When we examined a selection of companies with market caps ranging from AU$143m to AU$571m, we found the median CEO total compensation was AU$746k.
It would therefore appear that GTN Limited pays Bill Yde more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at GTN has changed over time.
Is GTN Limited Growing?
On average over the last three years, GTN Limited has grown earnings per share (EPS) by 100% each year (using a line of best fit). It achieved revenue growth of 5.7% over the 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 modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has GTN Limited Been A Good Investment?
Given the total loss of 40% over three years, many shareholders in GTN Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount GTN Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if GTN insiders are buying or selling shares.