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Suzanne Jacobi-Lee became the CEO of Eumundi Group Limited (ASX:EBG) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
View our latest analysis for Eumundi Group
How Does Suzanne Jacobi-Lee's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Eumundi Group Limited has a market cap of AU$37m, and is paying total annual CEO compensation of AU$211k. (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$184k. We looked at a group of companies with market capitalizations under AU$285m, and the median CEO total compensation was AU$358k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Eumundi Group has changed from year to year.
Is Eumundi Group Limited Growing?
On average over the last three years, Eumundi Group Limited has grown earnings per share (EPS) by 32% each year (using a line of best fit). In the last year, its revenue is up 5.3%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Eumundi Group Limited Been A Good Investment?
I think that the total shareholder return of 73%, over three years, would leave most Eumundi Group Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Eumundi Group Limited is currently paying its CEO below what is normal for companies of its size. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Suzanne Jacobi-Lee deserves a raise!