Mike Buck became the CEO of Petro Matad Limited (FRA:HA3) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Petro Matad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Petro Matad
Comparing Petro Matad Limited's CEO Compensation With the industry
Our data indicates that Petro Matad Limited has a market capitalization of €12m, and total annual CEO compensation was reported as US$743k for the year to December 2019. Notably, that's an increase of 27% over the year before. Notably, the salary of US$743k is the entirety of the CEO compensation.
On comparing similar-sized companies in the industry with market capitalizations below €169m, we found that the median total CEO compensation was US$383k. Hence, we can conclude that Mike Buck is remunerated higher than the industry median. What's more, Mike Buck holds €157k worth of shares in the company in their own name.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$743k | US$586k | 100% |
| Other | - | - | - |
| Total Compensation | US$743k | US$586k | 100% |
Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. Speaking on a company level, Petro Matad prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Petro Matad Limited's Growth
Petro Matad Limited has reduced its earnings per share by 27% a year over the last three years. In the last year, its revenue is up 341%.
The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Petro Matad Limited Been A Good Investment?
Since shareholders would have lost about 74% over three years, some Petro Matad Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Petro Matad rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Petro Matad pays its CEO higher than the norm for similar-sized companies belonging to the same industry. At the same time, looking at EPS and total shareholder returns, it's tough to say Petro Matad is in a sound position, considering both metrics are down. In contrast, revenue growth for the company has been showing a positive trend. Suffice it to say, we don't think the CEO is underpaid!
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 6 warning signs (and 3 which make us uncomfortable) in Petro Matad we think you should know about.
Switching gears from Petro Matad, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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. 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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About DB:HA3
Petro Matad
Engages in the exploration, development, and production of oil in Mongolia.
High growth potential moderate.
