Yahoo Finance Is Eon NRG Limited's (ASX:E2E) CEO Pay Fair?
John Whisler became the CEO of Eon NRG Limited (ASX:E2E) in 2014. 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.
View our latest analysis for Eon NRG
How Does John Whisler's Compensation Compare With Similar Sized Companies?
Our data indicates that Eon NRG Limited is worth AU$4.6m, and total annual CEO compensation was reported as US$384k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$300k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$260k.
It would therefore appear that Eon NRG Limited pays John Whisler more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration 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 Eon NRG, below.
Is Eon NRG Limited Growing?
On average over the last three years, Eon NRG Limited has grown earnings per share (EPS) by 76% each year (using a line of best fit). In the last year, its revenue is down 4.9%.
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 shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Eon NRG Limited Been A Good Investment?
Since shareholders would have lost about 85% over three years, some Eon NRG Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared the total CEO remuneration paid by Eon NRG Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying Eon NRG shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.
