In 2008 Philip Kelso was appointed CEO of Bounty Oil & Gas NL (ASX:BUY). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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.
How Does Philip Kelso’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Bounty Oil & Gas NL has a market cap of AU$3.8m, and is paying total annual CEO compensation of AU$418k. (This figure is for the year to June 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$398k. We took a group of companies with market capitalizations below AU$282m, and calculated the median CEO total compensation to be AU$354k.
So Philip Kelso is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Bounty Oil & Gas, below.
Is Bounty Oil & Gas NL Growing?
Bounty Oil & Gas NL has increased its earnings per share (EPS) by an average of 35% a year, over the last three years (using a line of best fit). Revenue was pretty flat on last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Bounty Oil & Gas NL Been A Good Investment?
With a three year total loss of 60%, Bounty Oil & Gas NL would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Philip Kelso is close enough to the median pay for a CEO of a similar sized company .
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. Whatever your view on compensation, you might want to check if insiders are buying or selling Bounty Oil & Gas shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.