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Our Take On Cooper Energy Limited's (ASX:COE) CEO Salary

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In 2011 David Maxwell was appointed CEO of Cooper Energy Limited (ASX:COE). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Cooper Energy

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

Our data indicates that Cooper Energy Limited is worth AU$843m, and total annual CEO compensation is AU$2.2m. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$767k. We looked at a group of companies with market capitalizations from AU$287m to AU$1.1b, and the median CEO total compensation was AU$1.0m.

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Thus we can conclude that David Maxwell receives more in total compensation than the median of a group of companies in the same market, and of similar size to Cooper Energy Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Cooper Energy, below.

ASX:COE CEO Compensation, June 5th 2019
ASX:COE CEO Compensation, June 5th 2019

Is Cooper Energy Limited Growing?

Over the last three years Cooper Energy Limited has grown its earnings per share (EPS) by an average of 2.7% per year (using a line of best fit). It achieved revenue growth of 25% over the last year.

I think the revenue growth is good. And the modest growth in earnings per share isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has Cooper Energy Limited Been A Good Investment?

Boasting a total shareholder return of 124% over three years, Cooper Energy Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

We compared the total CEO remuneration paid by Cooper Energy Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Cooper Energy (free visualization of insider trades).

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.