In 2014 George Walter Maxwell was appointed CEO of Eland Oil & Gas PLC (LON:ELA). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does George Walter Maxwell’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Eland Oil & Gas PLC has a market cap of UK£266m, and is paying total annual CEO compensation of US$937k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$413k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£164m to UK£657m. The median total CEO compensation was UK£710k.
As you can see, George Walter Maxwell is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Eland Oil & Gas PLC is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Eland Oil & Gas, below.
Is Eland Oil & Gas PLC Growing?
Over the last three years Eland Oil & Gas PLC has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). It achieved revenue growth of 145% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
Has Eland Oil & Gas PLC Been A Good Investment?
I think that the total shareholder return of 251%, over three years, would leave most Eland Oil & Gas PLC shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared total CEO remuneration at Eland Oil & Gas PLC with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Eland Oil & Gas (free visualization of insider trades).
If you want to buy a stock that is better than Eland Oil & Gas, this free list of high return, low debt companies is a great place to look.
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