Does Atlas Pearls Ltd’s (ASX:ATP) CEO Pay Compare Well With Peers?
Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize!
Pierre Francois Fallourd became the CEO of Atlas Pearls Ltd (ASX:ATP) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Atlas Pearls
How Does Pierre Francois Fallourd’s Compensation Compare With Similar Sized Companies?
According to our data, Atlas Pearls Ltd has a market capitalization of AU$5.9m, and pays its CEO total annual compensation worth AU$274k. (This is based on the year to June 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$240k. We took a group of companies with market capitalizations below AU$280m, and calculated the median CEO compensation to be AU$361k.
That means Pierre Francois Fallourd 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 Atlas Pearls, below.
Is Atlas Pearls Ltd Growing?
Over the last three years Atlas Pearls Ltd has grown its earnings per share (EPS) by an average of 72% per year (using a line of best fit). Its revenue is down -13% over last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Atlas Pearls Ltd Been A Good Investment?
With a three year total loss of 58%, Atlas Pearls Ltd would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
Pierre Francois Fallourd is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Atlas Pearls.
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.