In This Article:
In 2016 Andrew Burnes was appointed CEO of Helloworld Travel Limited (ASX:HLO). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Helloworld Travel
How Does Andrew Burnes’s Compensation Compare With Similar Sized Companies?
Our data indicates that Helloworld Travel Limited is worth AU$697m, and total annual CEO compensation is AU$509k. That’s just a smallish increase of 5.4% on last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$273m to AU$1.1b. The median total CEO compensation was AU$1.1m.
Most shareholders would consider it a positive that Andrew Burnes takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Helloworld Travel has changed from year to year.
Is Helloworld Travel Limited Growing?
On average over the last three years, Helloworld Travel Limited has grown earnings per share (EPS) by 129% each year. In the last year, its revenue changed by just 0.01%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Helloworld Travel Limited Been A Good Investment?
I think that the total shareholder return of 169%, over three years, would leave most Helloworld Travel Limited shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
It appears that Helloworld Travel Limited remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Andrew Burnes deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money.