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The CEO of WT Financial Group Limited (ASX:WTL) is Keith Cullen, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether WT Financial Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for WT Financial Group
Comparing WT Financial Group Limited's CEO Compensation With the industry
According to our data, WT Financial Group Limited has a market capitalization of AU$7.8m, and paid its CEO total annual compensation worth AU$398k over the year to June 2020. That's a modest increase of 3.6% on the prior year. Notably, the salary which is AU$298.3k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below AU$275m, reported a median total CEO compensation of AU$636k. In other words, WT Financial Group pays its CEO lower than the industry median. What's more, Keith Cullen holds AU$1.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$298k | AU$298k | 75% |
| Other | AU$100k | AU$86k | 25% |
| Total Compensation | AU$398k | AU$384k | 100% |
Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. WT Financial Group is paying a higher share of its remuneration through a salary in comparison to the overall 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.
A Look at WT Financial Group Limited's Growth Numbers
WT Financial Group Limited has seen its earnings per share (EPS) increase by 38% a year over the past three years. In the last year, its revenue is up 15%.
Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has WT Financial Group Limited Been A Good Investment?
With a three year total loss of 57% for the shareholders, WT Financial Group Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As we noted earlier, WT Financial Group pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Importantly though, the company has impressed with its EPS growth over three years. Considering EPS are on the up, we would say Keith is compensated fairly. But shareholders will likely want to hold off on any raise for Keith until investor returns are positive.