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Our Take On Bounty Oil & Gas NL's (ASX:BUY) CEO Salary

In 2008 Philip Kelso was appointed CEO of Bounty Oil & Gas NL (ASX:BUY). This analysis aims first to contrast CEO compensation 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. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Bounty Oil & Gas

How Does Philip Kelso's Compensation Compare With Similar Sized Companies?

According to our data, Bounty Oil & Gas NL has a market capitalization of AU$4.8m, and paid its CEO total annual compensation worth AU$412k over the year to June 2019. That's below the compensation, last year. Notably, the salary of AU$398k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below AU$291m. The median CEO total compensation in that group is AU$379k.

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So Philip Kelso is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Bounty Oil & Gas has changed over time.

ASX:BUY CEO Compensation, December 20th 2019
ASX:BUY CEO Compensation, December 20th 2019

Is Bounty Oil & Gas NL Growing?

Over the last three years Bounty Oil & Gas NL has grown its earnings per share (EPS) by an average of 3.6% per year (using a line of best fit). Its revenue is up 130% over last year.

It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Bounty Oil & Gas NL Been A Good Investment?

With a three year total loss of 38%, Bounty Oil & Gas NL would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Philip Kelso is paid around what is normal the leaders of comparable size companies.

The per share growth could be better, in our view. And it's hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. Whatever your view on compensation, you might want to check if insiders are buying or selling Bounty Oil & Gas shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.