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Is Brookside Energy Limited's (ASX:BRK) CEO Paid Enough Relative To Peers?

Simply Wall St

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David Prentice has been the CEO of Brookside Energy Limited (ASX:BRK) since 2004. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Brookside Energy

How Does David Prentice's Compensation Compare With Similar Sized Companies?

Our data indicates that Brookside Energy Limited is worth AU$13m, and total annual CEO compensation is AU$255k. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at AU$175k. We took a group of companies with market capitalizations below AU$285m, and calculated the median CEO total compensation to be AU$354k.

So David Prentice is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Brookside Energy has changed from year to year.

ASX:BRK CEO Compensation, May 6th 2019

Is Brookside Energy Limited Growing?

On average over the last three years, Brookside Energy Limited has grown earnings per share (EPS) by 80% each year (using a line of best fit). Its revenue is up 238% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Brookside Energy Limited Been A Good Investment?

Most shareholders would probably be pleased with Brookside Energy Limited for providing a total return of 44% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

David Prentice is paid around what is normal the leaders of comparable size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Brookside Energy 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.

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.