If you are happy with the salary of the CEO at Geneva Finance Limited (NZSE: GFL)

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David O'Connell became the CEO of Geneva Finance Limited (NZSE: GFL) in 2008. This article will first compare the compensation of the CEO to that of companies of similar size. We will then examine the growth that the company demonstrates. Third, we will consider total shareholder return over three years as a second measure of corporate performance. The purpose of all this is to examine the relevance of CEO compensation levels.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Check out our latest analysis for Geneva Finance "data-reactid =" 29 "> See our latest analysis for Geneva Finance

How does David O'Connell's compensation compare to companies of similar size?

According to our data, Geneva Finance Limited is worth NZ $ 39 million and the total annual remuneration of the CEO is NZ $ 567k. (This is based on the year until 2018). Although this analysis focuses on total compensation, it should be noted that the salary is lower, valued at NZ $ 467,000. We selected a group of companies with a market capitalization of less than NZ $ 297 million and calculated that the median compensation of the CEO was NZ $ 209,000.

It would seem, then, that Geneva Finance Limited is paying David O'Connell more than the median compensation of the CEO in companies of similar size, located in the same market. However, this fact alone does not mean that the remuneration is too high. We can get a better idea of ​​the generosity of compensation by examining the performance of the underlying business.

You can see below how the compensation of the directors of Geneva Finance has evolved over time.

NZSE: Compensation of the CEO of GFL on February 13th 19

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Geneva Finance Limited is growing?

Over the past three years, Geneva Finance Limited has seen earnings per share (EPS) increase by an average of 18% per year (using a best fit line). Its turnover has increased by 38% over the last year.

Overall, this is a positive result for shareholders, which shows that the company has improved in recent years. It's great to see that revenue growth is also strong. These measures suggest that the business is growing strongly. While we do not have analyst forecasts, you can better understand its growth by looking at this more detailed historical chart of earnings, revenues, and cash flow.

Was Geneva Finance Limited a good investment?

Most shareholders would probably like Geneva Finance Limited to provide a total return of 58% over three years. As a result, some might think that the CEO should be paid more than similar sized companies.

In summary…

We compared the total compensation of CEOs paid by Geneva Finance Limited to a fee paid to a group of companies of similar size. Our data suggests that it pays above the median compensation of the CEO in this group.

Most importantly, the company has been impressed by the growth in earnings per share over three years. In addition, the shareholders were successful during the same period. Given this good result for shareholders, we believe that the CEO's compensation may be appropriate. Shareholders may want to check for free if Geneva Finance insiders buy or sell shares.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "We can say that the quality of the business is much more important as the CEO compensation levels. free list of interesting companies, which have a high return on equity and a low debt. "data-reactid =" 54 "> It can be argued that the quality of the company is far more important than the compensation levels of the President and CEO. free list of interesting companies, which have a high return on equity and a low debt.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "To help readers understand the past volatility of the financial market in the short term, our goal is to provide you with a long-term research analysis based solely on fundamental data. Note that our analysis does not take into account the latest price sensitive business announcements.

The author is an independent contributor and, at the time of publication, was not positioned in the actions mentioned. For errors that need to be corrected, please contact the publisher at editorial-team@simplywallst.com.

"data-reactid =" 55 "> To help readers overcome the short-term volatility of the financial market, we aim to present a long-term research analysis based on fundamental data only. account of the latest price sensitive business announcements.

The author is an independent contributor and, at the time of publication, was not positioned in the actions mentioned. For errors that need to be corrected, please contact the publisher at editorial-team@simplywallst.com.