Why San Leon Energy plc's (LON:SLE) CEO Pay Matters To You

In 2016 Oisín Fanning was appointed CEO of San Leon Energy plc (LON:SLE). First, this article will compare CEO compensation with compensation at similar sized companies. 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.

See our latest analysis for San Leon Energy

How Does Oisín Fanning's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that San Leon Energy plc has a market cap of UK£125m, and reported total annual CEO compensation of US$1.6m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$424k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €90m to €360m. The median total CEO compensation was €539k.

Thus we can conclude that Oisín Fanning receives more in total compensation than the median of a group of companies in the same market, and of similar size to San Leon Energy plc. However, this doesn't necessarily mean the pay is too high. 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 a visual representation of the CEO compensation at San Leon Energy, below.

Is San Leon Energy plc Growing?

On average over the last three years, San Leon Energy plc has grown earnings per share (EPS) by 142% each year (using a line of best fit). Its revenue is down 43% over last year.

This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has San Leon Energy plc Been A Good Investment?

With a three year total loss of 43%, San Leon Energy plc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at San Leon Energy plc 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. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if San Leon Energy 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.

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.

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