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Tony Pitt became the CEO of 360 Capital Group Limited (ASX:TGP) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for 360 Capital Group.
Note: The company does not report funds from operations, and as a result, we have used earnings per share in our analysis.
Check out our latest analysis for 360 Capital Group
How Does Total Compensation For Tony Pitt Compare With Other Companies In The Industry?
Our data indicates that 360 Capital Group Limited has a market capitalization of AU$179m, and total annual CEO compensation was reported as AU$805k for the year to June 2020. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at AU$578.8k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under AU$275m, the reported median total CEO compensation was AU$514k. This suggests that Tony Pitt is paid more than the median for the industry. What's more, Tony Pitt holds AU$55m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$579k | AU$548k | 72% |
| Other | AU$227k | AU$247k | 28% |
| Total Compensation | AU$805k | AU$796k | 100% |
Talking in terms of the industry, salary represented approximately 51% of total compensation out of all the companies we analyzed, while other remuneration made up 49% of the pie. 360 Capital Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
360 Capital Group Limited's Growth
360 Capital Group Limited has reduced its earnings per share by 72% a year over the last three years. It achieved revenue growth of 30% over the last year.
The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.