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In 2016 Mark Coulter was appointed CEO of Temple & Webster Group Limited (ASX:TPW). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
See our latest analysis for Temple & Webster Group
How Does Mark Coulter's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Temple & Webster Group Limited has a market cap of AU$169m, and is paying total annual CEO compensation of AU$757k. (This figure is for the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$278k. We examined a group of similar sized companies, with market capitalizations of below AU$287m. The median CEO total compensation in that group is AU$357k.
As you can see, Mark Coulter is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Temple & Webster Group Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Temple & Webster Group has changed from year to year.
Is Temple & Webster Group Limited Growing?
Over the last three years Temple & Webster Group Limited has grown its earnings per share (EPS) by an average of 101% per year (using a line of best fit). Its revenue is up 35% over last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.
Has Temple & Webster Group Limited Been A Good Investment?
Boasting a total shareholder return of 883% over three years, Temple & Webster Group Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We compared the total CEO remuneration paid by Temple & Webster Group 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.