Yahoo Finance Should You Be Pleased About The CEO Pay At First Graphene Limited’s (ASX:FGR)
Craig McGuckin became the CEO of First Graphene Limited (ASX:FGR) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
View our latest analysis for First Graphene
How Does Craig McGuckin’s Compensation Compare With Similar Sized Companies?
According to our data, First Graphene Limited has a market capitalization of AU$68m, and pays its CEO total annual compensation worth AU$896k. (This is based on the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$480k. We took a group of companies with market capitalizations below AU$282m, and calculated the median CEO total compensation to be AU$354k.
It would therefore appear that First Graphene Limited pays Craig McGuckin 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, below, how CEO compensation at First Graphene has changed over time.
Is First Graphene Limited Growing?
Over the last three years First Graphene Limited has grown its earnings per share (EPS) by an average of 8.1% per year (using a line of best fit). It achieved revenue growth of 34% over the last year.
I like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. So while I’d stop short of saying growth is absolutely outstanding, there are definitely some clear positives! We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has First Graphene Limited Been A Good Investment?
Most shareholders would probably be pleased with First Graphene Limited for providing a total return of 202% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
In Summary…
We compared total CEO remuneration at First Graphene Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at First Graphene.
If you want to buy a stock that is better than First Graphene, this free list of high return, low debt companies is a great place to look.
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.
