In 2015 Simon Taylor was appointed CEO of Oklo Resources Limited (ASX:OKU). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
Check out our latest analysis for Oklo Resources
How Does Simon Taylor's Compensation Compare With Similar Sized Companies?
According to our data, Oklo Resources Limited has a market capitalization of AU$99m, and paid its CEO total annual compensation worth AU$378k over the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$345k. We looked at a group of companies with market capitalizations under AU$308m, and the median CEO total compensation was AU$397k.
That means Simon Taylor receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Oklo Resources, below.
Is Oklo Resources Limited Growing?
Oklo Resources Limited has increased its earnings per share (EPS) by an average of 27% a year, over the last three years (using a line of best fit). Its revenue is up 151% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Oklo Resources Limited Been A Good Investment?
Since shareholders would have lost about 22% over three years, some Oklo Resources 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...
Simon Taylor is paid around what is normal for the leaders of comparable size companies.
We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over 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. Taking a breather from CEO compensation, we've spotted 7 warning signs for Oklo Resources (of which 3 are potentially serious!) you should know about in order to have a holistic understanding of the stock.