In 2015 Hamish John Bohannan was appointed CEO of Gulf Manganese Corporation Limited (ASX:GMC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Hamish John Bohannan's Compensation Compare With Similar Sized Companies?
Our data indicates that Gulf Manganese Corporation Limited is worth AU$30m, and total annual CEO compensation was reported as AU$535k for the year to June 2019. That's actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at AU$345k. We examined a group of similar sized companies, with market capitalizations of below AU$293m. The median CEO total compensation in that group is AU$374k.
Thus we can conclude that Hamish John Bohannan receives more in total compensation than the median of a group of companies in the same market, and of similar size to Gulf Manganese Corporation Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Gulf Manganese has changed over time.
Is Gulf Manganese Corporation Limited Growing?
On average over the last three years, Gulf Manganese Corporation Limited has grown earnings per share (EPS) by 39% each year (using a line of best fit). Its revenue is down 15% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Gulf Manganese Corporation Limited Been A Good Investment?
Since shareholders would have lost about 79% over three years, some Gulf Manganese Corporation Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Gulf Manganese Corporation Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying Gulf Manganese shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.