In 2003 Andrew F. Wilkinson was appointed CEO of ALE Property Group (ASX:LEP). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for ALE Property Group

How Does Andrew F. Wilkinson's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that ALE Property Group has a market cap of AU$1.0b, and is paying total annual CEO compensation of AU$774k. (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$451k. We looked at a group of companies with market capitalizations from AU$589m to AU$2.4b, and the median CEO total compensation was AU$1.4m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at ALE Property Group, below.

Is ALE Property Group Growing?

ALE Property Group has reduced its earnings per share by an average of 17% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 2.4% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has ALE Property Group Been A Good Investment?

Boasting a total shareholder return of 34% over three years, ALE Property Group has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

It appears that ALE Property Group remunerates its CEO below most similar sized companies.

It's well worth noting that while Andrew F. Wilkinson is paid less than most company leaders (at similar sized companies), there isn't much EPS growth. Having said that, returns to shareholders have been great. So, while it would be nice to have EPS growth, on our analysis the CEO compensation is not an issue. Shareholders may want to check for free if ALE Property Group insiders are buying or selling shares.