In 2013 Quentin Hill was appointed CEO of Carpentaria Resources Limited (ASX:CAP). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does Quentin Hill’s Compensation Compare With Similar Sized Companies?
Our data indicates that Carpentaria Resources Limited is worth AU$11m, and total annual CEO compensation is AU$367k. (This figure is for the year to 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$278k. We looked at a group of companies with market capitalizations under AU$282m, and the median CEO compensation was AU$368k.
So Quentin Hill receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Carpentaria Resources has changed over time.
Is Carpentaria Resources Limited Growing?
Carpentaria Resources Limited has increased its earnings per share (EPS) by an average of 54% a year, over the last three years (using a line of best fit). It saw its revenue drop -166% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Carpentaria Resources Limited Been A Good Investment?
Most shareholders would probably be pleased with Carpentaria Resources Limited for providing a total return of 202% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Quentin Hill is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Carpentaria Resources shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.