The CEO of RightCrowd Limited (ASX:RCW) is Peter Hill, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether RightCrowd pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for RightCrowd

How Does Total Compensation For Peter Hill Compare With Other Companies In The Industry?

At the time of writing, our data shows that RightCrowd Limited has a market capitalization of AU$51m, and reported total annual CEO compensation of AU$254k for the year to June 2020. That's a modest increase of 3.4% on the prior year. Notably, the salary which is AU$228.3k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under AU$277m, the reported median total CEO compensation was AU$328k. This suggests that RightCrowd remunerates its CEO largely in line with the industry average.

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. It's interesting to note that RightCrowd pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

RightCrowd Limited's Growth

RightCrowd Limited has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is up 23%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 RightCrowd Limited Been A Good Investment?

Since shareholders would have lost about 29% over three years, some RightCrowd Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As previously discussed, Peter is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But on the bright side, EPS growth is positive over the same period. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 1 which is a bit unpleasant) in RightCrowd we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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