In 2007 Robert Schuitema was appointed CEO of Phoslock Environmental Technologies Limited (ASX:PET). 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. 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.
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How Does Robert Schuitema’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Phoslock Environmental Technologies Limited has a market cap of AU$236m, and is paying total annual CEO compensation of AU$295k. (This figure is for the year to June 2018). Notably, the salary of AU$295k is the vast majority of the CEO compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$100m to AU$400m. The median total CEO compensation was AU$534k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Phoslock Environmental Technologies, below.
Is Phoslock Environmental Technologies Limited Growing?
On average over the last three years, Phoslock Environmental Technologies Limited has grown earnings per share (EPS) by 62% each year (using a line of best fit). In the last year, its revenue is up 121%.
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. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Phoslock Environmental Technologies Limited Been A Good Investment?
Boasting a total shareholder return of 473% over three years, Phoslock Environmental Technologies Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that Phoslock Environmental Technologies Limited remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Robert Schuitema deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Phoslock Environmental Technologies (free visualization of insider trades).
If you want to buy a stock that is better than Phoslock Environmental Technologies, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.