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Gerry Tuddenham became the CEO of CPT Global Limited (ASX:CGO) in 2004. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for CPT Global
How Does Gerry Tuddenham's Compensation Compare With Similar Sized Companies?
According to our data, CPT Global Limited has a market capitalization of AU$6.4m, and pays its CEO total annual compensation worth AU$416k. (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$379k. We examined a group of similar sized companies, with market capitalizations of below AU$285m. The median CEO total compensation in that group is AU$358k.
That means Gerry Tuddenham 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, below, how CEO compensation at CPT Global has changed over time.
Is CPT Global Limited Growing?
On average over the last three years, CPT Global Limited has grown earnings per share (EPS) by 99% each year (using a line of best fit). In the last year, its revenue is up 12%.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has CPT Global Limited Been A Good Investment?
With a three year total loss of 42%, CPT Global Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for Gerry Tuddenham is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. So you may want to check if insiders are buying CPT Global shares with their own money (free access).