In 2013 Georges Cohen was appointed CEO of Robex Resources Inc. (CVE:RBX). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
How Does Georges Cohen’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Robex Resources Inc. has a market cap of CA$41m, and is paying total annual CEO compensation of CA$719k. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$519k. We looked at a group of companies with market capitalizations under CA$268m, and the median CEO total compensation was CA$142k.
As you can see, Georges Cohen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Robex Resources Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Robex Resources has changed over time.
Is Robex Resources Inc. Growing?
Over the last three years Robex Resources Inc. has grown its earnings per share (EPS) by an average of 94% per year (using a line of best fit). It achieved revenue growth of 76% over the last year.
This demonstrates that the company has been improving recently. A good result. 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 shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Robex Resources Inc. Been A Good Investment?
Given the total loss of 48% over three years, many shareholders in Robex Resources Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Robex Resources Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Shareholders may want to check for free if Robex Resources insiders are buying or selling shares.
If you want to buy a stock that is better than Robex Resources, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.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.