Chris Coonan became the CEO of LandMark White Limited (ASX:LMW) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for LandMark White
Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.
How Does Chris Coonan’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that LandMark White Limited has a market cap of AU$41m, and is paying total annual CEO compensation of AU$312k. (This is based on the year to 2018). While we always look at total compensation first, we note that the salary component is less, at AU$228k. We took a group of companies with market capitalizations below AU$281m, and calculated the median CEO compensation to be AU$367k.
So Chris Coonan is paid around the average of 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 LandMark White has changed over time.
Is LandMark White Limited Growing?
LandMark White Limited has increased its earnings per share (EPS) by an average of 8.3% a year, over the last three years (using a line of best fit). Its revenue is up 72% over last year.
I like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn’t shabby. I wouldn’t say this is necessarily top notch growth, but it is certainly promising.
Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has LandMark White Limited Been A Good Investment?
With a total shareholder return of 14% over three years, LandMark White Limited shareholders would, in general, be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
Remuneration for Chris Coonan is close enough to the median pay for a CEO of a similar sized company .
We think many would like to see better growth. While there is room for improvement, we haven’t seen evidence to suggest the pay is too generous. So you may want to check if insiders are buying LandMark White shares with their own money (free access).