In This Article:
John Robinson has been the CEO of Australian Pacific Coal Limited (ASX:AQC) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Australian Pacific Coal
How Does John Robinson's Compensation Compare With Similar Sized Companies?
Our data indicates that Australian Pacific Coal Limited is worth AU$27m, and total annual CEO compensation is AU$508k. (This number is for the twelve months until June 2018). Notably, the salary of AU$488k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under AU$281m, and the median CEO total compensation was AU$357k.
As you can see, John Robinson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Australian Pacific Coal 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.
The graphic below shows how CEO compensation at Australian Pacific Coal has changed from year to year.
Is Australian Pacific Coal Limited Growing?
Australian Pacific Coal Limited has reduced its earnings per share by an average of 14% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -45%.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Australian Pacific Coal Limited Been A Good Investment?
Since shareholders would have lost about 43% over three years, some Australian Pacific Coal Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Australian Pacific Coal Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.