The CEO of Emperor Energy Limited (ASX:EMP) is Carl Dumbrell. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Emperor Energy
How Does Carl Dumbrell's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Emperor Energy Limited has a market cap of AU$3.1m, and reported total annual CEO compensation of AU$126k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at . We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations under AU$285m, and the median CEO total compensation was AU$379k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Emperor Energy has changed over time.
Is Emperor Energy Limited Growing?
On average over the last three years, Emperor Energy Limited has grown earnings per share (EPS) by 103% each year (using a line of best fit). It saw its revenue drop 94% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Emperor Energy Limited Been A Good Investment?
With a three year total loss of 6.7%, Emperor Energy Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
It appears that Emperor Energy Limited remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. We're not critical of the remuneration Carl Dumbrell receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. Shareholders may want to check for free if Emperor Energy insiders are buying or selling shares.
Important note: Emperor Energy may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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