In 2016 Tim Hart was appointed CEO of Fremont Petroleum Corporation Limited (ASX:FPL). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

View our latest analysis for Fremont Petroleum

How Does Tim Hart's Compensation Compare With Similar Sized Companies?

Our data indicates that Fremont Petroleum Corporation Limited is worth AU$12m, and total annual CEO compensation was reported as AU$364k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$275k. We examined a group of similar sized companies, with market capitalizations of below AU$287m. The median CEO total compensation in that group is AU$381k.

So Tim Hart is paid around the average of 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 Fremont Petroleum, below.

Is Fremont Petroleum Corporation Limited Growing?

Fremont Petroleum Corporation Limited has increased its earnings per share (EPS) by an average of 86% a year, over the last three years (using a line of best fit). Its revenue is up 5.0% over last year.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Fremont Petroleum Corporation Limited Been A Good Investment?

Given the total loss of 86% over three years, many shareholders in Fremont Petroleum Corporation Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Tim Hart is paid around what is normal the leaders of comparable size companies.

We like that the company is growing EPS, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Fremont Petroleum shares (free trial).

If you want to buy a stock that is better than Fremont Petroleum, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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