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How Much Did Cadogan Petroleum plc’s (LON:CAD) CEO Pocket Last Year?

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Guido Michelotti has been the CEO of Cadogan Petroleum plc (LON:CAD) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Cadogan Petroleum

How Does Guido Michelotti’s Compensation Compare With Similar Sized Companies?

Our data indicates that Cadogan Petroleum plc is worth UK£17m, and total annual CEO compensation is US$640k. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$497k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$316k.

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Thus we can conclude that Guido Michelotti receives more in total compensation than the median of a group of companies in the same market, and of similar size to Cadogan Petroleum plc. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Cadogan Petroleum, below.

LSE:CAD CEO Compensation, February 21st 2019
LSE:CAD CEO Compensation, February 21st 2019

Is Cadogan Petroleum plc Growing?

Cadogan Petroleum plc has increased its earnings per share (EPS) by an average of 105% a year, over the last three years (using a line of best fit). Its revenue is up 25% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Cadogan Petroleum plc Been A Good Investment?

Since shareholders would have lost about 29% over three years, some Cadogan Petroleum plc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

We examined the amount Cadogan Petroleum plc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cadogan Petroleum.

Important note: Cadogan Petroleum 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.