Matthew Boyall became the CEO of Cue Energy Resources Limited (ASX:CUE) 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 Cue Energy Resources.
Check out our latest analysis for Cue Energy Resources
How Does Total Compensation For Matthew Boyall Compare With Other Companies In The Industry?
At the time of writing, our data shows that Cue Energy Resources Limited has a market capitalization of AU$122m, and reported total annual CEO compensation of AU$545k for the year to June 2020. Notably, that's an increase of 8.1% over the year before. Notably, the salary which is AU$356.0k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below AU$272m, reported a median total CEO compensation of AU$353k. Accordingly, our analysis reveals that Cue Energy Resources Limited pays Matthew Boyall north of the industry median.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$356k | AU$345k | 65% |
| Other | AU$189k | AU$160k | 35% |
| Total Compensation | AU$545k | AU$505k | 100% |
Speaking on an industry level, nearly 76% of total compensation represents salary, while the remainder of 24% is other remuneration. It's interesting to note that Cue Energy Resources allocates a smaller portion of compensation to salary 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.
Cue Energy Resources Limited's Growth
Cue Energy Resources Limited has seen its earnings per share (EPS) increase by 65% a year over the past three years. It saw its revenue drop 7.1% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Cue Energy Resources Limited Been A Good Investment?
Boasting a total shareholder return of 165% over three years, Cue Energy Resources Limited has done well by shareholders. 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.
To Conclude...
As we noted earlier, Cue Energy Resources pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. Given the strong history of shareholder returns, the shareholders are probably very happy with Matthew's performance.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Cue Energy Resources that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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:CUE
Cue Energy Resources
An oil and gas production and exploration company, engages in the exploration, development, and production of petroleum products.
Excellent balance sheet, good value and pays a dividend.
