Joe Salomon has been the CEO of Oilex Ltd (ASX:OEX) since 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Joe Salomon’s Compensation Compare With Similar Sized Companies?
Our data indicates that Oilex Ltd is worth AU$12m, and total annual CEO compensation is AU$274k. (This is based on the year to 2018). That’s less than last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$223k. We looked at a group of companies with market capitalizations under AU$278m, and the median CEO compensation was AU$365k.
That means Joe Salomon receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Oilex has changed over time.
Is Oilex Ltd Growing?
On average over the last three years, Oilex Ltd has grown earnings per share (EPS) by 80% each year. Its revenue is up 78% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
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 Oilex Ltd Been A Good Investment?
With a three year total loss of 62%, Oilex Ltd would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Joe Salomon is paid around what is normal the leaders of comparable 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 improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. So you may want to check if insiders are buying Oilex shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.