Phillip Anderson became the CEO of Alt Resources Limited (ASX:ARS) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.

View our latest analysis for Alt Resources

How Does Phillip Anderson's Compensation Compare With Similar Sized Companies?

According to our data, Alt Resources Limited has a market capitalization of AU$11m, and paid its CEO total annual compensation worth AU$366k over the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$176k. We took a group of companies with market capitalizations below AU$286m, and calculated the median CEO total compensation to be AU$380k.

So Phillip Anderson receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Alt Resources, below.

Is Alt Resources Limited Growing?

On average over the last three years, Alt Resources Limited has grown earnings per share (EPS) by 14% each year (using a line of best fit). It achieved revenue growth of 785% over the last year.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Alt Resources Limited Been A Good Investment?

Since shareholders would have lost about 82% over three years, some Alt Resources Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Phillip Anderson is paid around what is normal the leaders of comparable size companies.

We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Alt Resources (free visualization of insider trades).