Mick Wilson became the CEO of Helix Resources Limited (ASX:HLX) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Mick Wilson's Compensation Compare With Similar Sized Companies?
Our data indicates that Helix Resources Limited is worth AU$6.8m, and total annual CEO compensation was reported as AU$258k for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$200k. We took a group of companies with market capitalizations below AU$289m, and calculated the median CEO total compensation to be AU$382k.
A first glance this seems like a real positive for shareholders, since Mick Wilson is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Helix Resources, below.
Is Helix Resources Limited Growing?
Helix Resources Limited has increased its earnings per share (EPS) by an average of 35% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 46%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Helix Resources Limited Been A Good Investment?
Given the total loss of 67% over three years, many shareholders in Helix Resources Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
It looks like Helix Resources Limited pays its CEO less than similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. Few would deny that the total shareholder return over the last three years could have been a lot better. We're not critical of the remuneration Mick Wilson receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Shareholders may want to check for free if Helix Resources insiders are buying or selling shares.
If you want to buy a stock that is better than Helix Resources, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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. Thank you for reading.