In This Article:
Elias Hazouri has been the CEO of HiTech Group Australia Limited (ASX:HIT) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for HiTech Group Australia
How Does Elias Hazouri's Compensation Compare With Similar Sized Companies?
According to our data, HiTech Group Australia Limited has a market capitalization of AU$45m, and paid its CEO total annual compensation worth AU$400k over the year to June 2019. That's just a smallish increase of 6.9% on last year. It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$400k. We looked at a group of companies with market capitalizations under AU$291m, and the median CEO total compensation was AU$380k.
So Elias Hazouri receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 HiTech Group Australia has changed over time.
Is HiTech Group Australia Limited Growing?
Over the last three years, HiTech Group Australia Limited has not seen its earnings per share change much, though there is a positive trend. It achieved revenue growth of 15% over the last year.
I would argue that the modest growth in revenue is a notable positive. And, while modest, the earnings per share growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has HiTech Group Australia Limited Been A Good Investment?
Most shareholders would probably be pleased with HiTech Group Australia Limited for providing a total return of 177% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Elias Hazouri is paid around what is normal the leaders of comparable size companies.
While the growth could be better, the shareholder returns are clearly good. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. So you may want to check if insiders are buying HiTech Group Australia shares with their own money (free access).