Yahoo Finance What Did Pacific Energy Limited's (ASX:PEA) CEO Take Home Last Year?
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Jamie de Barran Cullen has been the CEO of Pacific Energy Limited (ASX:PEA) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Pacific Energy
How Does Jamie de Barran Cullen's Compensation Compare With Similar Sized Companies?
Our data indicates that Pacific Energy Limited is worth AU$286m, and total annual CEO compensation is AU$587k. (This is based on the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$431k. We examined companies with market caps from AU$143m to AU$574m, and discovered that the median CEO total compensation of that group was AU$713k.
That means Jamie de Barran Cullen receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Pacific Energy has changed over time.
Is Pacific Energy Limited Growing?
On average over the last three years, Pacific Energy Limited has shrunk earnings per share by 15% each year (measured with a line of best fit). It achieved revenue growth of 82% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.
Has Pacific Energy Limited Been A Good Investment?
Most shareholders would probably be pleased with Pacific Energy Limited for providing a total return of 50% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Jamie de Barran Cullen is paid around the same as most CEOs of similar size companies.
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. Shareholders may want to check for free if Pacific Energy insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
