It's Probably Less Likely That Cullen Resources Limited's (ASX:CUL) CEO Will See A Huge Pay Rise This Year

Key Insights

• Cullen Resources' Annual General Meeting to take place on 21st of November
• Total pay for CEO Chris Ringrose includes AU$210.0k salary
• The overall pay is comparable to the industry average
• Over the past three years, Cullen Resources' EPS grew by 24% and over the past three years, the total loss to shareholders 70%

Shareholders of Cullen Resources Limited (ASX:CUL) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 21st of November. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Cullen Resources

How Does Total Compensation For Chris Ringrose Compare With Other Companies In The Industry?

Our data indicates that Cullen Resources Limited has a market capitalization of AU$3.5m, and total annual CEO compensation was reported as AU$278k for the year to June 2024. That's a notable increase of 15% on last year. Notably, the salary which is AU$210.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Australian Metals and Mining industry with market capitalizations below AU$309m, we found that the median total CEO compensation was AU$396k. This suggests that Cullen Resources remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	AU$210k	AU$210k	76%
Other	AU$68k	AU$32k	24%
Total Compensation	AU$278k	AU$242k	100%

Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. According to our research, Cullen Resources has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Cullen Resources Limited's Growth Numbers

Cullen Resources Limited has seen its earnings per share (EPS) increase by 24% a year over the past three years. It achieved revenue growth of 42% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Cullen Resources Limited Been A Good Investment?

Few Cullen Resources Limited shareholders would feel satisfied with the return of -70% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 5 warning signs for Cullen Resources you should be aware of, and 4 of them can't be ignored.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.