Is HUB24 Limited's (ASX:HUB) CEO Pay Fair?
Andrew Alcock became the CEO of HUB24 Limited (ASX:HUB) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for HUB24
How Does Andrew Alcock's Compensation Compare With Similar Sized Companies?
Our data indicates that HUB24 Limited is worth AU$691m, and total annual CEO compensation was reported as AU$1.0m for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$428k. We looked at a group of companies with market capitalizations from AU$293m to AU$1.2b, and the median CEO total compensation was AU$1.0m.
So Andrew Alcock is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at HUB24, below.
Is HUB24 Limited Growing?
Over the last three years HUB24 Limited has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). It achieved revenue growth of 15% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has HUB24 Limited Been A Good Investment?
Boasting a total shareholder return of 124% over three years, HUB24 Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Andrew Alcock is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying HUB24 shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
