Is Infigen Energy Limited's (ASX:IFN) CEO Paid At A Competitive Rate?

Ross Rolfe became the CEO of Infigen Energy Limited (ASX:IFN) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.

Check out our latest analysis for Infigen Energy

How Does Ross Rolfe's Compensation Compare With Similar Sized Companies?

According to our data, Infigen Energy Limited has a market capitalization of AU$702m, and paid its CEO total annual compensation worth AU$1.9m over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$836k. We looked at a group of companies with market capitalizations from AU$301m to AU$1.2b, and the median CEO total compensation was AU$1.0m.

As you can see, Ross Rolfe is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Infigen Energy Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Infigen Energy has changed from year to year.

ASX:IFN CEO Compensation, February 24th 2020
ASX:IFN CEO Compensation, February 24th 2020

Is Infigen Energy Limited Growing?

Infigen Energy Limited has increased its earnings per share (EPS) by an average of 4.5% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 25%.

It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. It could be important to check this free visual depiction of what analysts expect for the future.

Has Infigen Energy Limited Been A Good Investment?

Given the total loss of 21% over three years, many shareholders in Infigen Energy 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...

We compared total CEO remuneration at Infigen Energy Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.