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Our Take On Rumble Resources Limited’s (ASX:RTR) CEO Salary

In 2013 Shane Sikora was appointed CEO of Rumble Resources Limited (ASX:RTR). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Rumble Resources

How Does Shane Sikora’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Rumble Resources Limited has a market cap of AU$16m, and is paying total annual CEO compensation of AU$323k. (This number is for the twelve months until 2018). We note that’s an increase of 89% above last year. While we always look at total compensation first, we note that the salary component is less, at AU$175k. We looked at a group of companies with market capitalizations under AU$277m, and the median CEO compensation was AU$363k.

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So Shane Sikora is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Rumble Resources has changed over time.

ASX:RTR CEO Compensation December 14th 18
ASX:RTR CEO Compensation December 14th 18

Is Rumble Resources Limited Growing?

On average over the last three years, Rumble Resources Limited has grown earnings per share (EPS) by 26% each year. In the last year, its revenue is up 51%.

This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.

Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Rumble Resources Limited Been A Good Investment?

Most shareholders would probably be pleased with Rumble Resources Limited for providing a total return of 214% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

Remuneration for Shane Sikora is close enough to the median pay for a CEO of a similar sized company .

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Rumble Resources.

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.