Should You Worry About Eland Oil & Gas PLC’s (LON:ELA) CEO Pay?

George Walter Maxwell has been the CEO of Eland Oil & Gas PLC (LON:ELA) since 2014. 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

View our latest analysis for Eland Oil & Gas

How Does George Walter Maxwell’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Eland Oil & Gas PLC has a market cap of UK£278m, and is paying total annual CEO compensation of US$937k. (This is based on the year to December 2018). We note that’s an increase of 38% above last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$413k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£158m to UK£631m. The median total CEO compensation was UK£667k.

As you can see, George Walter Maxwell is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Eland Oil & Gas PLC is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Eland Oil & Gas has changed over time.

AIM:ELA CEO Compensation, May 27th 2019
AIM:ELA CEO Compensation, May 27th 2019

Is Eland Oil & Gas PLC Growing?

Over the last three years Eland Oil & Gas PLC has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). It achieved revenue growth of 145% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.

Has Eland Oil & Gas PLC Been A Good Investment?

Most shareholders would probably be pleased with Eland Oil & Gas PLC for providing a total return of 313% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

We compared the total CEO remuneration paid by Eland Oil & Gas PLC, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Eland Oil & Gas shares (free trial).

If you want to buy a stock that is better than Eland Oil & Gas, this free list of high return, low debt companies is a great place to look.

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.