Peter White became the CEO of Envirosuite Limited (ASX:EVS) in 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Envirosuite

How Does Peter White's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Envirosuite Limited has a market cap of AU$112m, and reported total annual CEO compensation of AU$415k for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$279k. We took a group of companies with market capitalizations below AU$311m, and calculated the median CEO total compensation to be AU$390k.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 67% of total compensation represents salary, while the remainder of 33% is other remuneration. Envirosuite does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.

So Peter White is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. The graphic below shows how CEO compensation at Envirosuite has changed from year to year.

Is Envirosuite Limited Growing?

Over the last three years Envirosuite Limited has shrunk its earnings per share by an average of 36% per year (measured with a line of best fit). In the last year, its revenue is down 4.1%.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has Envirosuite Limited Been A Good Investment?

Boasting a total shareholder return of 62% over three years, Envirosuite Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Peter White is paid around the same as most CEOs of similar size companies.

We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we can't see a reason to suggest the pay is inappropriate. On another note, we've spotted 5 warning signs for Envirosuite that investors should look into moving forward.

Important note: Envirosuite may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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