In This Article:
The CEO of Surefire Resources NL (ASX:SRN) is Roger Nikolaenko. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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.
See our latest analysis for Surefire Resources
How Does Roger Nikolaenko’s Compensation Compare With Similar Sized Companies?
Our data indicates that Surefire Resources NL is worth AU$1.8m, and total annual CEO compensation is AU$338k. (This is based on the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$200k. We examined a group of similar sized companies, with market capitalizations of below AU$282m. The median CEO total compensation in that group is AU$354k.
So Roger Nikolaenko is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Surefire Resources has changed from year to year.
Is Surefire Resources NL Growing?
On average over the last three years, Surefire Resources NL has grown earnings per share (EPS) by 43% each year (using a line of best fit). Its revenue is down -100% over last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Surefire Resources NL Been A Good Investment?
Given the total loss of 75% over three years, many shareholders in Surefire Resources NL 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…
Remuneration for Roger Nikolaenko is close enough to the median pay for a CEO of a similar sized company .
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). 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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Surefire Resources (free visualization of insider trades).