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Is Clean TeQ Holdings Limited's (ASX:CLQ) CEO Being Overpaid?

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Sam Riggall became the CEO of Clean TeQ Holdings Limited (ASX:CLQ) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. 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?

According to our data, Clean TeQ Holdings Limited has a market capitalization of AU$228m, and pays its CEO total annual compensation worth AU$651k. (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$437k. When we examined a selection of companies with market caps ranging from AU$142m to AU$570m, we found the median CEO total compensation was AU$757k.

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That means Sam Riggall receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Clean TeQ Holdings, below.

ASX:CLQ CEO Compensation, May 7th 2019
ASX:CLQ CEO Compensation, May 7th 2019

Is Clean TeQ Holdings Limited Growing?

Clean TeQ Holdings Limited has reduced its earnings per share by an average of 3.3% a year, over the last three years (measured with a line of best fit). Its revenue is up 292% over last year.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Shareholders might be interested in this free visualization of analyst forecasts.

Has Clean TeQ Holdings Limited Been A Good Investment?

Clean TeQ Holdings Limited has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Sam Riggall is paid around what is normal the leaders of comparable size companies.

We think many would like to see better growth. While there is room for improvement, we haven't seen evidence to suggest the pay is too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Clean TeQ Holdings.

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.