In 1997 Jeff Ellison was appointed CEO of SeaLink Travel Group Limited (ASX:SLK). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 SeaLink Travel Group

How Does Jeff Ellison's Compensation Compare With Similar Sized Companies?

Our data indicates that SeaLink Travel Group Limited is worth AU$378m, and total annual CEO compensation is AU$312k. (This number is for the twelve months until June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$254k. When we examined a selection of companies with market caps ranging from AU$147m to AU$589m, we found the median CEO total compensation was AU$722k.

A first glance this seems like a real positive for shareholders, since Jeff Ellison is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at SeaLink Travel Group, below.

Is SeaLink Travel Group Limited Growing?

Over the last three years SeaLink Travel Group Limited has shrunk its earnings per share by an average of 1.4% per year (measured with a line of best fit). It achieved revenue growth of 24% over the last year.

Unfortunately there is a complete lack of earnings per share improvement, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has SeaLink Travel Group Limited Been A Good Investment?

Given the total loss of 3.4% over three years, many shareholders in SeaLink Travel Group Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It looks like SeaLink Travel Group Limited pays its CEO less than similar sized companies.

Shareholders should note that compensation for Jeff Ellison is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at SeaLink Travel Group.