I'm not quite sure where an income of $700k+ from doing a job puts you exactly in Australia in terms percentage wise but it is at a point where you can start physically naming the people who do earn more than that from doing a job.
There might be 24,000 jobs for 0.1%, not sure because easily found public figures don't break it down that high. I don't think there are that many jobs in Australia where people can earn >700K+ a year as a wage.
Plenty of businesses and business people but you are talking partners at top tier law firms, CEOs, investment bankers, partners and consulting firms like McKinsey and Bain top billing surgeons most doctors top out at $400k without a large interventional private practice and then they would have liability insurance costs of $40-100k and staffing costs by then it is pretty much a business anyway.
So maybe I will change that to 0.2% because there definitely aren't 48,000 jobs in Australia where.
The FPH comparison was to say that it is a much larger, more complex entity with much more financial resources to pay for good management and yet the board only pays the CEO 50% more than SDI.
The share price is still lower than it was in 2007 so TSR from then it is terrible no matter what the NPAT has done. It was over $1 a share then. Haven't added dividends in but TSR is probably negative from 2007 which is almost 10 years.
The share price dropped to 10 cents in 2012 so if you were a long term shareholder at that point I'm pretty sure you wouldn't be so happy at the performance of the management who have been there this whole time.
They invested into the company and debt levels were high until recently but the salaries of management have always been relatively large. Unless you think $700k a year is not a lot of money for a wage. It is 0.85% of the total market capitalisation of SDI and this is with the share price still up 50% from April.
The dental market is also huge so there is massive scope for SDI to have expanded over this period and Dentsply which has a market cap of $13.1 billion USD a behemoth in the dental industry has had its share price go from about $30 to $56 USD over the same period, admittedly not that great either but better than a negative TSR and it has far less room to expand organically and just recently completed a takeover of one of its rivals
In what world is a management with a negative 10 year total shareholder return doing a good job, unless you are some dot.com company valued at billions of dollars with no profits and then you build a profitable company like Amazon or something.
SDI is no amazon.com
All that aside I think the new CEO might bring about some positive changes which is why I invested and because they finally paid away most of their debt. At a $1+ it was no longer cheap so I sold but if it goes back to 50cents I'd have another look or hangs around here for a year or two.
I'm not enamoured with the companies I have a shareholding of. I think the people on the FGR board probably don't like me either as I raise questions about the company there as well even though own the stock. It's a forum for discussion and unless you have varying view points what is the point. I like to raise points to see what other people's opinions are to see whether maybe I am wrong.
It is up to the company how much they pay its executives and as the majority shareholders are its executives they pretty much can choose whatever they want to pay themselves.
The family is getting around $1 million + a year in dividends franked as well from its shareholding.
For wages Warren Buffett chooses $USD 100,000. Sergey Brin and Larry Page $USD 1. The Lowy family >10 million a year each but they have had a fantastic TSR so whatever they have earned it. People still complain about how much money the Lowy family take as a salary.
SDI Price at posting:
69.0¢ Sentiment: Hold Disclosure: Not Held
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