Brad Thomas has been the CEO of Prophecy International Holdings Limited (ASX:PRO) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Prophecy International Holdings.

View our latest analysis for Prophecy International Holdings

Comparing Prophecy International Holdings Limited's CEO Compensation With the industry

At the time of writing, our data shows that Prophecy International Holdings Limited has a market capitalization of AU$38m, and reported total annual CEO compensation of AU$316k for the year to June 2020. That's a fairly small increase of 3.7% over the previous year. We note that the salary portion, which stands at AU$272.5k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under AU$282m, the reported median total CEO compensation was AU$340k. This suggests that Prophecy International Holdings remunerates its CEO largely in line with the industry average.

Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. Prophecy International Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Prophecy International Holdings Limited's Growth Numbers

Over the last three years, Prophecy International Holdings Limited has shrunk its earnings per share by 86% per year. Its revenue is up 13% over the last year.

Few shareholders would be pleased to read that EPS have declined. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Prophecy International Holdings Limited Been A Good Investment?

Prophecy International Holdings Limited has served shareholders reasonably well, with a total return of 18% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.