Yahoo Finance We Think The Compensation For Janison Education Group Limited's (ASX:JAN) CEO Looks About Right
Under the guidance of CEO David Caspari, Janison Education Group Limited (ASX:JAN) has performed reasonably well recently. As shareholders go into the upcoming AGM on 03 November 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
See our latest analysis for Janison Education Group
How Does Total Compensation For David Caspari Compare With Other Companies In The Industry?
According to our data, Janison Education Group Limited has a market capitalization of AU$99m, and paid its CEO total annual compensation worth AU$500k over the year to June 2022. That's a notable decrease of 28% on last year. Notably, the salary which is AU$380.0k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below AU$307m, reported a median total CEO compensation of AU$485k. So it looks like Janison Education Group compensates David Caspari in line with the median for the industry. Moreover, David Caspari also holds AU$294k worth of Janison Education Group stock directly under their own name.
Component | 2022 | 2021 | Proportion (2022) |
Salary | AU$380k | AU$346k | 76% |
Other | AU$120k | AU$350k | 24% |
Total Compensation | AU$500k | AU$696k | 100% |
Talking in terms of the industry, salary represented approximately 62% of total compensation out of all the companies we analyzed, while other remuneration made up 38% of the pie. Janison Education Group pays out 76% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Janison Education Group Limited's Growth
Over the last three years, Janison Education Group Limited has shrunk its earnings per share by 53% per year. In the last year, its revenue is up 20%.
Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Janison Education Group Limited Been A Good Investment?
Janison Education Group Limited has generated a total shareholder return of 7.7% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.
In Summary...
Some shareholders will be pleased by the relatively good results, however, the results could still be improved. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Janison Education Group that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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