Michael Masterman has been the CEO of Po Valley Energy Limited (ASX:PVE) since 2017, 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 Po Valley Energy.

Check out our latest analysis for Po Valley Energy

How Does Total Compensation For Michael Masterman Compare With Other Companies In The Industry?

Our data indicates that Po Valley Energy Limited has a market capitalization of AU$18m, and total annual CEO compensation was reported as €170k for the year to December 2019. We note that's an increase of 31% above last year. Notably, the salary which is €140.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below AU$282m, we found that the median total CEO compensation was €215k. This suggests that Po Valley Energy remunerates its CEO largely in line with the industry average. Furthermore, Michael Masterman directly owns AU$4.7m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. Po Valley Energy is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Po Valley Energy Limited's Growth

Over the last three years, Po Valley Energy Limited has shrunk its earnings per share by 32% per year. In the last year, its revenue is up 7,371%.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Po Valley Energy Limited Been A Good Investment?

Since shareholders would have lost about 3.2% over three years, some Po Valley Energy Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.