Is Swift Media Limited's (ASX:SW1) CEO Paid Enough Relative To Peers?

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Xavier Jean Kris has been the CEO of Swift Media Limited (ASX:SW1) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Swift Media

How Does Xavier Jean Kris's Compensation Compare With Similar Sized Companies?

Our data indicates that Swift Media Limited is worth AU$28m, and total annual CEO compensation is AU$1.3m. (This number is for the twelve months until June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$436k. We took a group of companies with market capitalizations below AU$287m, and calculated the median CEO total compensation to be AU$357k.

Thus we can conclude that Xavier Jean Kris receives more in total compensation than the median of a group of companies in the same market, and of similar size to Swift Media Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Swift Media has changed from year to year.

ASX:SW1 CEO Compensation, June 6th 2019
ASX:SW1 CEO Compensation, June 6th 2019

Is Swift Media Limited Growing?

Over the last three years Swift Media Limited has grown its earnings per share (EPS) by an average of 54% per year (using a line of best fit). It achieved revenue growth of 25% over the last year.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Swift Media Limited Been A Good Investment?

Given the total loss of 8.1% over three years, many shareholders in Swift Media Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared the total CEO remuneration paid by Swift Media Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.