Should You Be Pleased About The CEO Pay At SG Fleet Group Limited's (ASX:SGF)

In This Article:

Robbie Blau became the CEO of SG Fleet Group Limited (ASX:SGF) in 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 SG Fleet Group

How Does Robbie Blau's Compensation Compare With Similar Sized Companies?

According to our data, SG Fleet Group Limited has a market capitalization of AU$606m, and paid its CEO total annual compensation worth AU$1.5m over the year to June 2019. That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$1.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$296m to AU$1.2b. The median total CEO compensation was AU$1.1m.

As you can see, Robbie Blau is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean SG Fleet 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.

You can see a visual representation of the CEO compensation at SG Fleet Group, below.

ASX:SGF CEO Compensation, October 17th 2019
ASX:SGF CEO Compensation, October 17th 2019

Is SG Fleet Group Limited Growing?

Over the last three years SG Fleet Group Limited has grown its earnings per share (EPS) by an average of 7.4% per year (using a line of best fit). It saw its revenue drop 1.1% over the last year.

I generally like to see a little revenue growth, but it is good to see EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. You might want to check this free visual report on analyst forecasts for future earnings.

Has SG Fleet Group Limited Been A Good Investment?

Since shareholders would have lost about 38% over three years, some SG Fleet Group Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We examined the amount SG Fleet Group Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling SG Fleet Group shares (free trial).