In 2002, Peter Cook was appointed CEO of Novatti Group Limited (ASX:NOV). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 Novatti Group

How Does Peter Cook's Compensation Compare With Similar Sized Companies?

According to our data, Novatti Group Limited has a market capitalization of AU$32m, and paid its CEO total annual compensation worth AU$570k over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$335k. We examined a group of similar sized companies, with market capitalizations of below AU$312m. The median CEO total compensation in that group is AU$389k.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Novatti Group stands. Talking in terms of the sector, salary represented approximately 67% of total compensation out of all the companies we analysed, while other remuneration made up 33% of the pie. Our data reveals that Novatti Group allocates salary in line with the wider market.

As you can see, Peter Cook is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Novatti Group Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. The graphic below shows how CEO compensation at Novatti Group has changed from year to year.

Is Novatti Group Limited Growing?

Novatti Group Limited has seen earnings per share (EPS) move positively by an average of 15% a year, over the last three years (using a line of best fit). Its revenue is up 26% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Novatti Group Limited Been A Good Investment?

Novatti Group Limited has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.