Is Real Energy Corporation Limited's (ASX:RLE) CEO Paid At A Competitive Rate?
Scott Brown is the CEO of Real Energy Corporation Limited (ASX:RLE). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Real Energy
How Does Scott Brown's Compensation Compare With Similar Sized Companies?
Our data indicates that Real Energy Corporation Limited is worth AU$11m, and total annual CEO compensation was reported as AU$329k for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$305k. We took a group of companies with market capitalizations below AU$291m, and calculated the median CEO total compensation to be AU$380k.
So Scott Brown is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Real Energy has changed over time.
Is Real Energy Corporation Limited Growing?
On average over the last three years, Real Energy Corporation Limited has shrunk earnings per share by 64% each year (measured with a line of best fit). It saw its revenue drop 59% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Real Energy Corporation Limited Been A Good Investment?
Given the total loss of 56% over three years, many shareholders in Real Energy Corporation Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Scott Brown is paid around the same as most CEOs of similar size companies.
Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it's wise for the company to pay any more, before returns improve. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Real Energy.
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.
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. Thank you for reading.
