Andrew Woskett became the CEO of Minotaur Exploration Limited (ASX:MEP) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Andrew Woskett's Compensation Compare With Similar Sized Companies?
Our data indicates that Minotaur Exploration Limited is worth AU$16m, and total annual CEO compensation was reported as AU$373k for the year to June 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$356k. We examined a group of similar sized companies, with market capitalizations of below AU$296m. The median CEO total compensation in that group is AU$379k.
So Andrew Woskett is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Minotaur Exploration has changed from year to year.
Is Minotaur Exploration Limited Growing?
On average over the last three years, Minotaur Exploration Limited has grown earnings per share (EPS) by 45% each year (using a line of best fit). It achieved revenue growth of 46% over the 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 Minotaur Exploration Limited Been A Good Investment?
With a three year total loss of 52%, Minotaur Exploration Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Andrew Woskett is paid around the same as most CEOs of similar size companies.
We'd say the company can boast of its EPS growth, 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 Minotaur Exploration.
Important note: Minotaur Exploration 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.
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.
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