In This Article:
Andrew Ellison has been the CEO of Resource Development Group Limited (ASX:RDG) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Resource Development Group
How Does Andrew Ellison’s Compensation Compare With Similar Sized Companies?
Our data indicates that Resource Development Group Limited is worth AU$14m, and total annual CEO compensation is AU$167k. (This number is for the twelve months until 2018). Notably, that’s an increase of 19% over the year before. It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$167k. We examined a group of similar sized companies, with market capitalizations of below AU$282m. The median CEO compensation in that group is AU$368k.
A first glance this seems like a real positive for shareholders, since Andrew Ellison is paid less than the average compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Resource Development Group, below.
Is Resource Development Group Limited Growing?
Over the last three years Resource Development Group Limited has shrunk its earnings per share by an average of 115% per year. In the last year, its revenue is up 74%.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.
Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Resource Development Group Limited Been A Good Investment?
Most shareholders would probably be pleased with Resource Development Group Limited for providing a total return of 120% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
It appears that Resource Development Group Limited remunerates its CEO below most similar sized companies.