Yahoo Finance Should You Be Pleased About The CEO Pay At Crossland Strategic Metals Limited's (ASX:CUX)
Eric Vesel has been the CEO of Crossland Strategic Metals Limited (ASX:CUX) since 2016. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Crossland Strategic Metals
How Does Eric Vesel's Compensation Compare With Similar Sized Companies?
According to our data, Crossland Strategic Metals Limited has a market capitalization of AU$4.0m, and paid its CEO total annual compensation worth AU$160k over the year to December 2019. We looked at a group of companies with market capitalizations under AU$334m, and the median CEO total compensation was AU$404k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Crossland Strategic Metals has changed over time.
Is Crossland Strategic Metals Limited Growing?
On average over the last three years, Crossland Strategic Metals Limited has grown earnings per share (EPS) by 19% each year (using a line of best fit). It saw its revenue drop 71% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Crossland Strategic Metals Limited Been A Good Investment?
With a three year total loss of 43%, Crossland Strategic Metals Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Crossland Strategic Metals Limited is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we don't think, Eric Vesel is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. Shifting gears from CEO pay for a second, we've spotted 4 warning signs for Crossland Strategic Metals you should be aware of, and 3 of them don't sit too well with us.
If you want to buy a stock that is better than Crossland Strategic Metals, this free list of high return, low debt companies is a great place to look.
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