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In 2010 Shaun Ankers was appointed CEO of Energy One Limited (ASX:EOL). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Energy One
How Does Shaun Ankers's Compensation Compare With Similar Sized Companies?
According to our data, Energy One Limited has a market capitalization of AU$39m, and pays its CEO total annual compensation worth AU$479k. (This is based on the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$311k. We examined a group of similar sized companies, with market capitalizations of below AU$285m. The median CEO total compensation in that group is AU$358k.
As you can see, Shaun Ankers is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Energy One 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.
You can see, below, how CEO compensation at Energy One has changed over time.
Is Energy One Limited Growing?
On average over the last three years, Energy One Limited has grown earnings per share (EPS) by 32% each year (using a line of best fit). Its revenue is up 36% over last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Energy One Limited Been A Good Investment?
I think that the total shareholder return of 546%, over three years, would leave most Energy One Limited shareholders smiling. 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 examined the amount Energy One Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.