Is Avesoro Resources Inc.’s (TSE:ASO) CEO Pay Fair?

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In 2016 Serhan Umurhan was appointed CEO of Avesoro Resources Inc. (TSE:ASO). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Avesoro Resources

How Does Serhan Umurhan’s Compensation Compare With Similar Sized Companies?

Our data indicates that Avesoro Resources Inc. is worth CA$217m, and total annual CEO compensation is US$687k. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$481k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$614k.

So Serhan Umurhan is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Avesoro Resources has changed over time.

TSX:ASO CEO Compensation, February 20th 2019
TSX:ASO CEO Compensation, February 20th 2019

Is Avesoro Resources Inc. Growing?

Avesoro Resources Inc. has increased its earnings per share (EPS) by an average of 70% a year, over the last three years (using a line of best fit). It achieved revenue growth of 200% over the last year.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.

Has Avesoro Resources Inc. Been A Good Investment?

Since shareholders would have lost about 59% over three years, some Avesoro Resources Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Serhan Umurhan is paid around what is normal the leaders of comparable size companies.

We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. Shareholders may want to check for free if Avesoro Resources insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.