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Clarke Dudley has been the CEO of Boadicea Resources Ltd (ASX:BOA) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Clarke Dudley's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Boadicea Resources Ltd has a market cap of AU$6.6m, and is paying total annual CEO compensation of AU$131k. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$120k. We examined a group of similar sized companies, with market capitalizations of below AU$285m. The median CEO total compensation in that group is AU$354k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Boadicea Resources, below.
Is Boadicea Resources Ltd Growing?
On average over the last three years, Boadicea Resources Ltd has shrunk earnings per share by 15% each year (measured with a line of best fit). In the last year, its revenue is down -28%.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet 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 Boadicea Resources Ltd Been A Good Investment?
Given the total loss of 24% over three years, many shareholders in Boadicea Resources Ltd are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
It appears that Boadicea Resources Ltd remunerates its CEO below most similar sized companies.
Shareholders should note that compensation for Clarke Dudley is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Boadicea Resources shares (free trial).
If you want to buy a stock that is better than Boadicea Resources, this free list of high return, low debt companies is a great place to look.
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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.