In This Article:
David Deitz is the CEO of Gullewa Limited (ASX:GUL). 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.
Check out our latest analysis for Gullewa
How Does David Deitz's Compensation Compare With Similar Sized Companies?
Our data indicates that Gullewa Limited is worth AU$4.3m, and total annual CEO compensation was reported as AU$306k for the year to June 2019. Notably, that's an increase of 42% over the year before. While we always look at total compensation first, we note that the salary component is less, at AU$175k. We looked at a group of companies with market capitalizations under AU$293m, and the median CEO total compensation was AU$380k.
That means David Deitz 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 a visual representation of the CEO compensation at Gullewa, below.
Is Gullewa Limited Growing?
Over the last three years Gullewa Limited has grown its earnings per share (EPS) by an average of 116% per year (using a line of best fit). In the last year, its revenue is down 1.4%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Gullewa Limited Been A Good Investment?
Gullewa Limited has served shareholders reasonably well, with a total return of 27% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
David Deitz is paid around what is normal the leaders of comparable size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Gullewa shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.