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Jim Shedd became the CEO of Intra Energy Corporation Limited (ASX:IEC) in 2016. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Jim Shedd's Compensation Compare With Similar Sized Companies?
Our data indicates that Intra Energy Corporation Limited is worth AU$5.4m, and total annual CEO compensation is AU$408k. (This figure is for the year to June 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$408k. We took a group of companies with market capitalizations below AU$289m, and calculated the median CEO total compensation to be AU$356k.
So Jim Shedd receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Intra Energy has changed from year to year.
Is Intra Energy Corporation Limited Growing?
Over the last three years Intra Energy Corporation Limited has grown its earnings per share (EPS) by an average of 43% per year (using a line of best fit). In the last year, its revenue is up 55%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Intra Energy Corporation Limited Been A Good Investment?
Boasting a total shareholder return of 75% over three years, Intra Energy Corporation Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Jim Shedd is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Intra Energy (free visualization of insider trades).
Important note: Intra Energy may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.