The CEO of Walkabout Resources Limited (ASX:WKT) is Trevor Benson. 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. 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.
How Does Trevor Benson’s Compensation Compare With Similar Sized Companies?
According to our data, Walkabout Resources Limited has a market capitalization of AU$52m, and paid its CEO total annual compensation worth AU$287k over the year to June 2019. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$250k. We examined a group of similar sized companies, with market capitalizations of below AU$312m. The median CEO total compensation in that group is AU$390k.
Now let’s take a look at the pay mix on an industry and company level to gain a better understanding of where Walkabout Resources stands. Speaking on an industry level, we can see that nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. Our data reveals that Walkabout Resources allocates salary in line with the wider market.
That means Trevor Benson receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. The graphic below shows how CEO compensation at Walkabout Resources has changed from year to year.
Is Walkabout Resources Limited Growing?
Over the last three years Walkabout Resources Limited has seen earnings per share (EPS) move in a positive direction by an average of 34% per year (using a line of best fit). Its revenue is down 61% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 Walkabout Resources Limited Been A Good Investment?
I think that the total shareholder return of 130%, over three years, would leave most Walkabout Resources Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Trevor Benson 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. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is an important area to keep your eyes on, but we’ve also identified 8 warning signs for Walkabout Resources (3 are a bit concerning!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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