Trevor Benson is the CEO of Walkabout Resources Limited (ASX:WKT), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Walkabout Resources.
How Does Total Compensation For Trevor Benson Compare With Other Companies In The Industry?
Our data indicates that Walkabout Resources Limited has a market capitalization of AU$47m, and total annual CEO compensation was reported as AU$274k for the year to June 2020. That's a slightly lower by 4.8% over the previous year. We note that the salary portion, which stands at AU$250.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under AU$260m, the reported median total CEO compensation was AU$306k. From this we gather that Trevor Benson is paid around the median for CEOs in the industry. Furthermore, Trevor Benson directly owns AU$308k worth of shares in the company.
On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. Walkabout Resources 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.
Walkabout Resources Limited's Growth
Over the last three years, Walkabout Resources Limited has shrunk its earnings per share by 6.1% per year. It achieved revenue growth of 55% over the last year.
The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Walkabout Resources Limited Been A Good Investment?
Most shareholders would probably be pleased with Walkabout Resources Limited for providing a total return of 36% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As previously discussed, Trevor is compensated close to the median for companies of its size, and which belong to the same industry. The company has logged solid shareholder returns for the past three years. Revenues have also showed some positive momentum, recently. However, on a concerning note, EPS is not growing. Overall, the company's performance hasn't been that disappointing for us to object the CEO compensation.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 5 warning signs (and 3 which don't sit too well with us) in Walkabout Resources we think you should know about.
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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