Increases to Energy One Limited's (ASX:EOL) CEO Compensation Might Cool off for now

CEO Shaun Ankers has done a decent job of delivering relatively good performance at Energy One Limited (ASX:EOL) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 11 November 2021. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Energy One

Comparing Energy One Limited's CEO Compensation With the industry

According to our data, Energy One Limited has a market capitalization of AU$165m, and paid its CEO total annual compensation worth AU$1.2m over the year to June 2021. We note that's an increase of 43% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$372k.

In comparison with other companies in the industry with market capitalizations under AU$270m, the reported median total CEO compensation was AU$413k. This suggests that Shaun Ankers is paid more than the median for the industry. Moreover, Shaun Ankers also holds AU$5.2m worth of Energy One stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	AU$372k	AU$372k	31%
Other	AU$817k	AU$459k	69%
Total Compensation	AU$1.2m	AU$831k	100%

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. Energy One pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Energy One Limited's Growth

Over the past three years, Energy One Limited has seen its earnings per share (EPS) grow by 40% per year. Its revenue is up 36% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Energy One Limited Been A Good Investment?

Most shareholders would probably be pleased with Energy One Limited for providing a total return of 571% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Energy One (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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.

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