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Diana Hu has been the CEO of Eastern Platinum Limited (TSE:ELR) 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 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 Diana Hu's Compensation Compare With Similar Sized Companies?
Our data indicates that Eastern Platinum Limited is worth CA$23m, and total annual CEO compensation is US$469k. (This figure is for the year to December 2018). We note that's an increase of 34% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$330k. We examined a group of similar sized companies, with market capitalizations of below CA$263m. The median CEO total compensation in that group is CA$152k.
Thus we can conclude that Diana Hu receives more in total compensation than the median of a group of companies in the same market, and of similar size to Eastern Platinum Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Eastern Platinum, below.
Is Eastern Platinum Limited Growing?
On average over the last three years, Eastern Platinum Limited has grown earnings per share (EPS) by 41% each year (using a line of best fit). Its revenue is up 1222% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Eastern Platinum Limited Been A Good Investment?
Given the total loss of 76% over three years, many shareholders in Eastern Platinum Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Eastern Platinum Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. This doesn't look great when you consider CEO remuneration is up on last year. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Eastern Platinum.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.