This article will reflect on the compensation paid to Matthew Boyall who has served as CEO of Cue Energy Resources Limited (ASX:CUE) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Matthew Boyall Compare With Other Companies In The Industry?
At the time of writing, our data shows that Cue Energy Resources Limited has a market capitalization of AU$129m, and reported total annual CEO compensation of AU$545k for the year to June 2020. That's a notable increase of 8.1% on last year. Notably, the salary which is AU$356.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under AU$275m, the reported median total CEO compensation was AU$358k. Hence, we can conclude that Matthew Boyall is remunerated higher than the industry median.
Speaking on an industry level, nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. In Cue Energy Resources' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Cue Energy Resources Limited's Growth Numbers
Over the past three years, Cue Energy Resources Limited has seen its earnings per share (EPS) grow by 65% per year. In the last year, its revenue is down 7.1%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Cue Energy Resources Limited Been A Good Investment?
Most shareholders would probably be pleased with Cue Energy Resources Limited for providing a total return of 208% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As previously discussed, Matthew is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. Given the strong history of shareholder returns, the shareholders are probably very happy with Matthew's performance.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Cue Energy Resources that you should be aware of before investing.
Switching gears from Cue Energy Resources, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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