Ed Clarke became the CEO of Yojee Limited (ASX:YOJ) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Yojee pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Yojee

Comparing Yojee Limited's CEO Compensation With the industry

According to our data, Yojee Limited has a market capitalization of AU$230m, and paid its CEO total annual compensation worth AU$324k over the year to June 2020. Notably, that's an increase of 19% over the year before. Notably, the salary which is AU$296.7k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from AU$136m to AU$544m, we found that the median CEO total compensation was AU$761k. In other words, Yojee pays its CEO lower than the industry median.

Component 2020 2019 Proportion (2020) Salary AU$297k AU$246k 92% Other AU$27k AU$27k 8% Total Compensation AU$324k AU$273k 100%

Talking in terms of the industry, salary represented approximately 59% of total compensation out of all the companies we analyzed, while other remuneration made up 41% of the pie. Yojee pays out 92% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance. ceo-compensation

Yojee Limited's Growth

Yojee Limited's earnings per share (EPS) grew 9.2% per year over the last three years. In the last year, its revenue is up 29%.

It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.



Has Yojee Limited Been A Good Investment?

Yojee Limited has generated a total shareholder return of 14% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

As we noted earlier, Yojee pays its CEO lower than the norm for similar-sized companies belonging to the same industry. But, shareholder returns and EPS growth have been unimpressive recently. Therefore, despite CEO compensation being fair by all accounts, shareholders will probably want to see more growth before they decide that Ed deserves a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Yojee (of which 2 are significant!) that you should know about in order to have a holistic understanding of the stock.

Important note: Yojee is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

This article by Simply Wall St is general in nature. 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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