In 2013 Matthew Yates was appointed CEO of OreCorp Limited (ASX:ORR). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Matthew Yates’s Compensation Compare With Similar Sized Companies?
Our data indicates that OreCorp Limited is worth AU$48m, and total annual CEO compensation is AU$431k. (This is based on the year to 2018). That’s actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at AU$325k. We looked at a group of companies with market capitalizations under AU$279m, and the median CEO compensation was AU$365k.
So Matthew Yates 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.
You can see a visual representation of the CEO compensation at OreCorp, below.
Is OreCorp Limited Growing?
Over the last three years OreCorp Limited has shrunk its earnings per share by an average of 44% per year. Its revenue is up 23% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has OreCorp Limited Been A Good Investment?
Boasting a total shareholder return of 83% over three years, OreCorp Limited has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
Matthew Yates is paid around what is normal the leaders of comparable size companies.
We feel that earnings per share have been a bit disappointing, but it’s nice to see positive shareholder returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. Shareholders may want to check for free if OreCorp insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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.