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Is Phoslock Environmental Technologies Limited's (ASX:PET) CEO Being Overpaid?

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Robert Schuitema became the CEO of Phoslock Environmental Technologies Limited (ASX:PET) in 2007. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Phoslock Environmental Technologies

How Does Robert Schuitema's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Phoslock Environmental Technologies Limited has a market cap of AU$372m, and is paying total annual CEO compensation of AU$2.3m. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$295k. When we examined a selection of companies with market caps ranging from AU$145m to AU$579m, we found the median CEO total compensation was AU$760k.

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As you can see, Robert Schuitema is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Phoslock Environmental Technologies Limited is paying too much. 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 Phoslock Environmental Technologies, below.

ASX:PET CEO Compensation, May 30th 2019
ASX:PET CEO Compensation, May 30th 2019

Is Phoslock Environmental Technologies Limited Growing?

On average over the last three years, Phoslock Environmental Technologies Limited has grown earnings per share (EPS) by 62% each year (using a line of best fit). Its revenue is up 121% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Phoslock Environmental Technologies Limited Been A Good Investment?

Boasting a total shareholder return of 772% over three years, Phoslock Environmental Technologies Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared the total CEO remuneration paid by Phoslock Environmental Technologies Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Phoslock Environmental Technologies 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.

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.