This article will reflect on the compensation paid to Sam Riggall who has served as CEO of Clean TeQ Holdings Limited (ASX:CLQ) since 2015. This analysis will also assess whether Clean TeQ Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Clean TeQ Holdings
Comparing Clean TeQ Holdings Limited's CEO Compensation With the industry
According to our data, Clean TeQ Holdings Limited has a market capitalization of AU$235m, and paid its CEO total annual compensation worth AU$754k over the year to June 2020. We note that's an increase of 14% above last year. Notably, the salary which is AU$435.0k, represents most of the total compensation being paid.
On examining similar-sized companies in the industry with market capitalizations between AU$129m and AU$515m, we discovered that the median CEO total compensation of that group was AU$753k. So it looks like Clean TeQ Holdings compensates Sam Riggall in line with the median for the industry. Furthermore, Sam Riggall directly owns AU$7.8m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$435k | AU$435k | 58% |
| Other | AU$319k | AU$227k | 42% |
| Total Compensation | AU$754k | AU$662k | 100% |
On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. In Clean TeQ Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Clean TeQ Holdings Limited's Growth
Over the last three years, Clean TeQ Holdings Limited has shrunk its earnings per share by 87% per year. It saw its revenue drop 75% over the last year.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Clean TeQ Holdings Limited Been A Good Investment?
Since shareholders would have lost about 81% over three years, some Clean TeQ Holdings Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As previously discussed, Sam is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 2 which are a bit concerning) in Clean TeQ Holdings we think you should know about.
Switching gears from Clean TeQ Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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About ASX:SRL
Sunrise Energy Metals
Engages in the metal recovery and exploration of other mineral tenements in Australia.
Flawless balance sheet very low.
