Yahoo Finance Does Encounter Resources Limited's (ASX:ENR) CEO Salary Compare Well With Others?
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Will Robinson became the CEO of Encounter Resources Limited (ASX:ENR) in 2004. 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 Encounter Resources
How Does Will Robinson's Compensation Compare With Similar Sized Companies?
According to our data, Encounter Resources Limited has a market capitalization of AU$17m, and pays its CEO total annual compensation worth AU$323k. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$266k. We examined a group of similar sized companies, with market capitalizations of below AU$291m. The median CEO total compensation in that group is AU$358k.
So Will Robinson is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Encounter Resources, below.
Is Encounter Resources Limited Growing?
Encounter Resources Limited has reduced its earnings per share by an average of 29% a year, over the last three years (measured with a line of best fit). Its revenue is up 1673% over 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. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Encounter Resources Limited Been A Good Investment?
Given the total loss of 48% over three years, many shareholders in Encounter Resources Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for Will Robinson is close enough to the median pay for a CEO of a similar sized company .
The company cannot boast particularly strong per share growth. And shareholder returns have been disappointing over the last three years. So suffice it to say we don't think the compensation is modest. Shareholders may want to check for free if Encounter Resources insiders are buying or selling shares.
Important note: Encounter Resources may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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.
