Clayton Astles has been the CEO of Azure Healthcare Limited (ASX:AZV) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Azure Healthcare.
See our latest analysis for Azure Healthcare
How Does Total Compensation For Clayton Astles Compare With Other Companies In The Industry?
Our data indicates that Azure Healthcare Limited has a market capitalization of AU$27m, and total annual CEO compensation was reported as AU$875k for the year to June 2020. We note that's an increase of 14% above last year. Notably, the salary which is AU$547.4k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under AU$282m, the reported median total CEO compensation was AU$569k. Accordingly, our analysis reveals that Azure Healthcare Limited pays Clayton Astles north of the industry median. What's more, Clayton Astles holds AU$203k worth of shares in the company in their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$547k | AU$570k | 63% |
| Other | AU$328k | AU$200k | 37% |
| Total Compensation | AU$875k | AU$771k | 100% |
On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. Azure Healthcare is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Azure Healthcare Limited's Growth Numbers
Over the past three years, Azure Healthcare Limited has seen its earnings per share (EPS) grow by 125% per year. The trailing twelve months of revenue was pretty much the same as the prior period.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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.
Has Azure Healthcare Limited Been A Good Investment?
Azure Healthcare Limited has generated a total shareholder return of 4.1% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.