Yahoo Finance Is Clean TeQ Holdings Limited (ASX:CLQ) Overpaying Its CEO?
Sam Riggall has been the CEO of Clean TeQ Holdings Limited (ASX:CLQ) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Clean TeQ Holdings
How Does Sam Riggall’s Compensation Compare With Similar Sized Companies?
Our data indicates that Clean TeQ Holdings Limited is worth AU$306m, and total annual CEO compensation is AU$651k. (This figure is for the year to 2018). That’s below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at AU$437k. We looked at a group of companies with market capitalizations from AU$138m to AU$553m, and the median CEO compensation was AU$757k.
That means Sam Riggall receives fairly typical remuneration for the CEO of a company that size. 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 a visual representation of the CEO compensation at Clean TeQ Holdings, below.
Is Clean TeQ Holdings Limited Growing?
Over the last three years Clean TeQ Holdings Limited has grown its earnings per share (EPS) by an average of 6.6% per year. In the last year, its revenue is up 270%.
I like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. So while I’d stop short of saying growth is absolutely outstanding, there are definitely some clear positives!
You might want to check this free visual report on analyst forecasts for future earnings.
Has Clean TeQ Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 152% over three years, Clean TeQ Holdings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Remuneration for Sam Riggall is close enough to the median pay for a CEO of a similar sized company .
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So all things considered I’d venture that the CEO pay is appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Clean TeQ Holdings.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
