Matthew Greentree has been the CEO of Ausgold Limited (ASX:AUC) since 2017. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Matthew Greentree's Compensation Compare With Similar Sized Companies?
Our data indicates that Ausgold Limited is worth AU$16m, and total annual CEO compensation was reported as AU$313k for the year to June 2019. We note that's an increase of 27% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$192k. We took a group of companies with market capitalizations below AU$292m, and calculated the median CEO total compensation to be AU$375k.
That means Matthew Greentree receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Ausgold has changed from year to year.
Is Ausgold Limited Growing?
Ausgold Limited has increased its earnings per share (EPS) by an average of 71% a year, over the last three years (using a line of best fit). Its revenue is down 65% over last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. 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 Ausgold Limited Been A Good Investment?
Given the total loss of 44% over three years, many shareholders in Ausgold Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Matthew Greentree is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last 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. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ausgold.
If you want to buy a stock that is better than Ausgold, this free list of high return, low debt companies is a great place to look.
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