How Should Investors React To Carpentaria Resources Limited’s (ASX:CAP) CEO Pay?

Quentin Hill became the CEO of Carpentaria Resources Limited (ASX:CAP) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Carpentaria Resources

How Does Quentin Hill’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Carpentaria Resources Limited has a market cap of AU$16m, and is paying total annual CEO compensation of AU$367k. (This is based on the year to 2018). Notably, that’s an increase of 44% over the year before. While we always look at total compensation first, we note that the salary component is less, at AU$278k. We examined a group of similar sized companies, with market capitalizations of below AU$274m. The median CEO compensation in that group is AU$362k.

So Quentin Hill is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Carpentaria Resources has changed from year to year.

ASX:CAP CEO Compensation December 4th 18
ASX:CAP CEO Compensation December 4th 18

Is Carpentaria Resources Limited Growing?

Carpentaria Resources Limited has increased its earnings per share (EPS) by an average of 54% a year, over the last three years In the last year, its revenue is down -166%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end.

Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Carpentaria Resources Limited Been A Good Investment?

Boasting a total shareholder return of 160% over three years, Carpentaria Resources Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Quentin Hill is paid around the same as most CEOs of similar size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Carpentaria Resources shares with their own money (free access).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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