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Mick O’Brien has been the CEO of EQT Holdings Limited (ASX:EQT) since 2016. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for EQT Holdings
How Does Mick O’Brien's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that EQT Holdings Limited has a market cap of AU$562m, and is paying total annual CEO compensation of AU$1.3m. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$665k. We looked at a group of companies with market capitalizations from AU$284m to AU$1.1b, and the median CEO total compensation was AU$1.0m.
Thus we can conclude that Mick O’Brien receives more in total compensation than the median of a group of companies in the same market, and of similar size to EQT Holdings Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at EQT Holdings has changed over time.
Is EQT Holdings Limited Growing?
Over the last three years EQT Holdings Limited has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). Its revenue is up 9.5% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has EQT Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with EQT Holdings Limited for providing a total return of 114% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We compared the total CEO remuneration paid by EQT Holdings Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.