In This Article:
Clarke Dudley has been the CEO of Boadicea Resources Ltd (ASX:BOA) since 2011. 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.
View our latest analysis for Boadicea Resources
How Does Clarke Dudley’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Boadicea Resources Ltd has a market cap of AU$4m, and is paying total annual CEO compensation of AU$131k. We took a group of companies with market capitalizations below AU$282m, and calculated the median CEO compensation to be AU$359k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Boadicea Resources has changed from year to year.
Is Boadicea Resources Ltd Growing?
On average over the last three years, Boadicea Resources Ltd has shrunk earnings per share by 26% each year. Its revenue is down -19% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Boadicea Resources Ltd Been A Good Investment?
Given the total loss of 74% over three years, many shareholders in Boadicea Resources Ltd are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
It appears that Boadicea Resources Ltd remunerates its CEO below most similar sized companies.
Clarke Dudley is paid less than CEOs of similar size companies, but the company isn’t growing and total shareholder returns have been disappointing. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. So you may want to check if insiders are buying Boadicea Resources Ltd shares with their own money (free access).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.