Yahoo Finance Is Arrow Minerals Limited's (ASX:AMD) CEO Being Overpaid?
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The CEO of Arrow Minerals Limited (ASX:AMD) is Steven Michael. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Arrow Minerals
How Does Steven Michael's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Arrow Minerals Limited has a market cap of AU$3.1m, and is paying total annual CEO compensation of AU$457k. (This is based on the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$311k. We examined a group of similar sized companies, with market capitalizations of below AU$285m. The median CEO total compensation in that group is AU$358k.
So Steven Michael receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Arrow Minerals, below.
Is Arrow Minerals Limited Growing?
Arrow Minerals Limited has increased its earnings per share (EPS) by an average of 57% a year, over the last three years (using a line of best fit). It achieved revenue growth of 295% over the last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Arrow Minerals Limited Been A Good Investment?
With a three year total loss of 90%, Arrow Minerals Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Steven Michael is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Shareholders may want to check for free if Arrow Minerals insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
