In This Article:
Peter De Leo became the CEO of Lycopodium Limited (ASX:LYL) in 2015. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Lycopodium
How Does Peter De Leo's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Lycopodium Limited has a market cap of AU$240m, and is paying total annual CEO compensation of AU$576k. (This figure is for the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$500k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$146m to AU$583m. The median total CEO compensation was AU$718k.
That means Peter De Leo receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Lycopodium has changed over time.
Is Lycopodium Limited Growing?
Lycopodium Limited has increased its earnings per share (EPS) by an average of 68% a year, over the last three years (using a line of best fit). It saw its revenue drop -14% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.
Has Lycopodium Limited Been A Good Investment?
I think that the total shareholder return of 191%, over three years, would leave most Lycopodium Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Peter De Leo is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Lycopodium insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.