Yahoo Finance Why Cue Energy Resources Limited's (ASX:CUE) CEO Pay Matters To You
Matthew Boyall became the CEO of Cue Energy Resources Limited (ASX:CUE) in 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Cue Energy Resources
How Does Matthew Boyall's Compensation Compare With Similar Sized Companies?
According to our data, Cue Energy Resources Limited has a market capitalization of AU$56m, and paid its CEO total annual compensation worth AU$505k over the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$345k. We took a group of companies with market capitalizations below AU$315m, and calculated the median CEO total compensation to be AU$387k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Cue Energy Resources. On an industry level, roughly 73% of total compensation represents salary and 27% is other remuneration. Our data reveals that Cue Energy Resources allocates salary in line with the wider market.
It would therefore appear that Cue Energy Resources Limited pays Matthew Boyall 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. The graphic below shows how CEO compensation at Cue Energy Resources has changed from year to year.
Is Cue Energy Resources Limited Growing?
On average over the last three years, Cue Energy Resources Limited has seen earnings per share (EPS) move in a favourable direction by 131% each year (using a line of best fit). It achieved revenue growth of 4.2% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Cue Energy Resources Limited Been A Good Investment?
Cue Energy Resources Limited has served shareholders reasonably well, with a total return of 23% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
We compared the total CEO remuneration paid by Cue Energy Resources Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Shifting gears from CEO pay for a second, we've picked out 3 warning signs for Cue Energy Resources that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
