In This Article:
Rob Bills became the CEO of Emmerson Resources Limited (ASX:ERM) in 2007. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Emmerson Resources
How Does Rob Bills’s Compensation Compare With Similar Sized Companies?
According to our data, Emmerson Resources Limited has a market capitalization of AU$29m, and pays its CEO total annual compensation worth AU$398k. (This number is for the twelve months until 2018). That’s less than last year. While we always look at total compensation first, we note that the salary component is less, at AU$368k. We took a group of companies with market capitalizations below AU$272m, and calculated the median CEO compensation to be AU$359k.
So Rob Bills receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Emmerson Resources, below.
Is Emmerson Resources Limited Growing?
On average over the last three years, Emmerson Resources Limited has shrunk earnings per share by 34% each year. It achieved revenue growth of 29% over the last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Emmerson Resources Limited Been A Good Investment?
I think that the total shareholder return of 80%, over three years, would leave most Emmerson Resources Limited shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
Rob Bills is paid around what is normal the leaders of comparable size companies.
While the growth could be better, the shareholder returns are clearly good. So considering most shareholders would be happy, we’d say the CEO pay is appropriate. Shareholders may want to check for free if Emmerson Resources insiders are buying or selling shares.