Does Cleanaway Waste Management Limited’s (ASX:CWY) CEO Salary Reflect Performance?

Vik Bansal became the CEO of Cleanaway Waste Management Limited (ASX:CWY) in 2015. This analysis aims first to contrast CEO compensati on with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.

See our latest analysis for Cleanaway Waste Management

How Does Vik Bansal's Compensation Compare With Similar Sized Companies?

According to our data, Cleanaway Waste Management Limited has a market capitalization of AU$3.3b, and pays its CEO total annual compensation worth AU$4.3m. (This number is for the twelve months until 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$1.3m. We looked at a group of companies with market capitalizations from AU$1.4b to AU$4.5b, and the median CEO compensation was AU$2.5m.

It would therefore appear that Cleanaway Waste Management Limited pays Vik Bansal more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Cleanaway Waste Management has changed from year to year.

ASX:CWY CEO Compensation January 10th 19

More Is Cleanaway Waste Management Limited Growing?

Over the last three years Cleanaway Waste Management Limited has grown its earnings per share (EPS) by an average of 59% per year (using a line of best fit). In the last year, its revenue is up 18%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Cleanaway Waste Management Limited Been A Good Investment?

I think that the total shareholder return of 166%, over three years, would leave most Cleanaway Waste Management Limited shareholders smiling. 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 examined the amount Cleanaway Waste Management Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time pe riod. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cleanaway Waste Management.

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a lon g-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.