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Is Pantoro Limited's (ASX:PNR) CEO Paid At A Competitive Rate?

Simply Wall St

Paul Cmrlec became the CEO of Pantoro Limited (ASX:PNR) in 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.

View our latest analysis for Pantoro

How Does Paul Cmrlec's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Pantoro Limited has a market cap of AU$165m, and reported total annual CEO compensation of AU$471k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$130k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations below AU$290m, and calculated the median CEO total compensation to be AU$381k.

That means Paul Cmrlec 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 a visual representation of the CEO compensation at Pantoro, below.

ASX:PNR CEO Compensation, January 16th 2020

Is Pantoro Limited Growing?

On average over the last three years, Pantoro Limited has grown earnings per share (EPS) by 87% each year (using a line of best fit). In the last year, its revenue is down 12%.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Pantoro Limited Been A Good Investment?

With a three year total loss of 36%, Pantoro Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Paul Cmrlec is paid around the same as most CEOs of similar size companies.

We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Shareholders may want to check for free if Pantoro insiders are buying or selling shares.

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.

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.

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.