In This Article:
Brendan Gore has been the CEO of Peet Limited (ASX:PPC) since 2007. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Peet
How Does Brendan Gore's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Peet Limited has a market cap of AU$607m, and reported total annual CEO compensation of AU$1.9m for the year to June 2019. That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at AU$917k. We looked at a group of companies with market capitalizations from AU$289m to AU$1.2b, and the median CEO total compensation was AU$1.0m.
It would therefore appear that Peet Limited pays Brendan Gore more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Peet has changed over time.
Is Peet Limited Growing?
Peet Limited has increased its earnings per share (EPS) by an average of 5.5% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 13%.
I would prefer it if there was revenue growth, but it is good to see EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Peet Limited Been A Good Investment?
Most shareholders would probably be pleased with Peet Limited for providing a total return of 48% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared total CEO remuneration at Peet Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Peet.