How Should Investors Feel About Boss Resources Limited's (ASX:BOE) CEO Pay?
Duncan Craib became the CEO of Boss Resources Limited (ASX:BOE) in 2017. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Boss Resources
How Does Duncan Craib's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Boss Resources Limited has a market cap of AU$100m, and is paying total annual CEO compensation of AU$319k. (This is based on the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$261k. We took a group of companies with market capitalizations below AU$290m, and calculated the median CEO total compensation to be AU$368k.
That means Duncan Craib receives fairly typical remuneration for the CEO of a company that size. 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 Boss Resources, below.
Is Boss Resources Limited Growing?
Over the last three years Boss Resources Limited has grown its earnings per share (EPS) by an average of 1.3% per year (using a line of best fit). It achieved revenue growth of 59% over the last year.
It's great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! You might want to check this free visual report on analyst forecasts for future earnings.
Has Boss Resources Limited Been A Good Investment?
With a total shareholder return of 19% over three years, Boss Resources Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Remuneration for Duncan Craib is close enough to the median pay for a CEO of a similar sized company .
The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. But we don't think the CEO compensation is a problem. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Boss Resources (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
