In This Article:
Rick Yeates became the CEO of Middle Island Resources Limited (ASX:MDI) in 2010. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Middle Island Resources
How Does Rick Yeates’s Compensation Compare With Similar Sized Companies?
Our data indicates that Middle Island Resources Limited is worth AU$6m, and total annual CEO compensation is AU$197k. That’s less than last year. We took a group of companies with market capitalizations below AU$281m, and calculated the median CEO compensation to be AU$355k.
Most shareholders would consider it a positive that Rick Yeates takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Middle Island Resources has changed from year to year.
Is Middle Island Resources Limited Growing?
On average over the last three years, Middle Island Resources Limited has grown earnings per share (EPS) by 42% each year. It achieved revenue growth of 328% over the last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Middle Island Resources Limited Been A Good Investment?
Middle Island Resources Limited has served shareholders reasonably well, with a total return of 19% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
Middle Island Resources Limited is currently paying its CEO below what is normal for companies of its size. Considering the underlying business is growing earnings, this would suggest the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Rick Yeates is overcompensated.
It’s good to see reasonable payment of the CEO, even while the business improves. But for me, it’s even better if insiders are also buying shares with their own cold, hard, cash. Whatever your view on compensation, you might want to check if insiders are buying or selling Middle Island Resources Limited shares (free trial).