The CEO of Cirrus Networks Holdings Limited (ASX:CNW) is Matt Sullivan. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Cirrus Networks Holdings
How Does Matt Sullivan's Compensation Compare With Similar Sized Companies?
Our data indicates that Cirrus Networks Holdings Limited is worth AU$38m, and total annual CEO compensation was reported as AU$352k for the year to June 2019. That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$273k. We examined a group of similar sized companies, with market capitalizations of below AU$294m. The median CEO total compensation in that group is AU$375k.
So Matt Sullivan receives a similar amount to the median CEO pay, amongst 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.
You can see, below, how CEO compensation at Cirrus Networks Holdings has changed over time.
Is Cirrus Networks Holdings Limited Growing?
Over the last three years Cirrus Networks Holdings Limited has grown its earnings per share (EPS) by an average of 121% per year (using a line of best fit). Its revenue is up 16% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Cirrus Networks Holdings Limited Been A Good Investment?
I think that the total shareholder return of 87%, over three years, would leave most Cirrus Networks Holdings 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...
Matt Sullivan is paid around what is normal the leaders of comparable 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! Shareholders may want to check for free if Cirrus Networks Holdings insiders are buying or selling shares.