Quentin Hill became the CEO of Carpentaria Resources Limited (ASX:CAP) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Quentin Hill’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Carpentaria Resources Limited has a market cap of AU$8.5m, and reported total annual CEO compensation of AU$390k for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$322k. We looked at a group of companies with market capitalizations under AU$293m, and the median CEO total compensation was AU$382k.
So Quentin Hill receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Carpentaria Resources has changed over time.
Is Carpentaria Resources Limited Growing?
On average over the last three years, Carpentaria Resources Limited has grown earnings per share (EPS) by 15% each year (using a line of best fit). In the last year, its revenue is down 42%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don’t have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Carpentaria Resources Limited Been A Good Investment?
Given the total loss of 53% over three years, many shareholders in Carpentaria Resources Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Quentin Hill is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Carpentaria Resources (free visualization of insider trades).
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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