How Much Did Bass Oil's (ASX:BAS) CEO Pocket Last Year?

Tino Guglielmo became the CEO of Bass Oil Limited (ASX:BAS) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Bass Oil.

View our latest analysis for Bass Oil

Comparing Bass Oil Limited's CEO Compensation With the industry

Our data indicates that Bass Oil Limited has a market capitalization of AU$3.3m, and total annual CEO compensation was reported as US$229k for the year to December 2019. That's a slightly lower by 6.9% over the previous year. In particular, the salary of US$208.9k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under AU$273m, the reported median total CEO compensation was US$258k. This suggests that Bass Oil remunerates its CEO largely in line with the industry average. What's more, Tino Guglielmo holds AU$286k worth of shares in the company in their own name.

On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. Bass Oil pays out 91% of remuneration in the form of a salary, significantly higher than the industry average. 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.

Bass Oil Limited's Growth

Bass Oil Limited's earnings per share (EPS) grew 158% per year over the last three years. It achieved revenue growth of 5.8% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Bass Oil Limited Been A Good Investment?

Since shareholders would have lost about 75% over three years, some Bass Oil Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we noted earlier, Bass Oil pays its CEO in line with similar-sized companies belonging to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. But on the bright side, EPS growth is positive over the same period. Overall, we wouldn't say Tino is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Bass Oil (of which 2 make us uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Important note: Bass Oil is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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