Yahoo Finance Is Carnavale Resources Limited's (ASX:CAV) CEO Paid At A Competitive Rate?
In 2014 Andy Beckwith was appointed CEO of Carnavale Resources Limited (ASX:CAV). First, this article will compare CEO compensation with compensation at similar sized companies. 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.
See our latest analysis for Carnavale Resources
How Does Andy Beckwith's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Carnavale Resources Limited has a market cap of AU$3.0m, and reported total annual CEO compensation of AU$121k for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at . We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We took a group of companies with market capitalizations below AU$291m, and calculated the median CEO total compensation to be AU$380k.
Most shareholders would consider it a positive that Andy Beckwith takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Carnavale Resources has changed from year to year.
Is Carnavale Resources Limited Growing?
Carnavale Resources Limited has increased its earnings per share (EPS) by an average of 89% a year, over the last three years (using a line of best fit). Its revenue is down 80% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Carnavale Resources Limited Been A Good Investment?
Given the total loss of 71% over three years, many shareholders in Carnavale Resources Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Carnavale Resources Limited is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we don't think, Andy Beckwith is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Whatever your view on compensation, you might want to check if insiders are buying or selling Carnavale Resources 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.
