How Much is Great Western Exploration Limited's (ASX:GTE) CEO Getting Paid?
Jordan Luckett became the CEO of Great Western Exploration Limited (ASX:GTE) in 2010. 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. This process should give us an idea about how appropriately the CEO is paid.
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View our latest analysis for Great Western Exploration
How Does Jordan Luckett's Compensation Compare With Similar Sized Companies?
According to our data, Great Western Exploration Limited has a market capitalization of AU$3.9m, and pays its CEO total annual compensation worth AU$321k. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$250k. We took a group of companies with market capitalizations below AU$289m, and calculated the median CEO total compensation to be AU$356k.
So Jordan Luckett 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, below, how CEO compensation at Great Western Exploration has changed over time.
Is Great Western Exploration Limited Growing?
On average over the last three years, Great Western Exploration Limited has grown earnings per share (EPS) by 95% each year (using a line of best fit). In the last year, its revenue is down -96%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Great Western Exploration Limited Been A Good Investment?
Given the total loss of 78% over three years, many shareholders in Great Western Exploration Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Jordan Luckett is paid around the same as most CEOs of similar size companies.
We like that the company is growing EPS, 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 Great Western Exploration shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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 editorial-team@simplywallst.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.
