How Should Investors Feel About RBR Group Limited’s (ASX:RBR) CEO Pay?

In this article:

Richard Edouard Carcenac became the CEO of RBR Group Limited (ASX:RBR) in 2015. 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. 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.

View our latest analysis for RBR Group

How Does Richard Edouard Carcenac’s Compensation Compare With Similar Sized Companies?

According to our data, RBR Group Limited has a market capitalization of AU$9.2m, and pays its CEO total annual compensation worth AU$337k. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at AU$228k. We examined a group of similar sized companies, with market capitalizations of below AU$282m. The median CEO compensation in that group is AU$368k.

That means Richard Edouard Carcenac receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at RBR Group has changed over time.

ASX:RBR CEO Compensation January 10th 19
ASX:RBR CEO Compensation January 10th 19

Is RBR Group Limited Growing?

Over the last three years RBR Group Limited has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). In the last year, its revenue is down -63%.

This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important.

Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has RBR Group Limited Been A Good Investment?

With a three year total loss of 16%, RBR Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

Richard Edouard Carcenac is paid around what is normal the leaders of comparable size companies.

We like that the company is growing EPS, but we find the returns over the last three years to be lacking. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling RBR Group shares (free trial).

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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