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Serhan Umurhan has been the CEO of Avesoro Resources Inc. (TSE:ASO) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Serhan Umurhan's Compensation Compare With Similar Sized Companies?
Our data indicates that Avesoro Resources Inc. is worth CA$104m, and total annual CEO compensation is US$715k. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$495k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$92k.
It would therefore appear that Avesoro Resources Inc. pays Serhan Umurhan more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Avesoro Resources has changed from year to year.
Is Avesoro Resources Inc. Growing?
Avesoro Resources Inc. has increased its earnings per share (EPS) by an average of 104% a year, over the last three years (using a line of best fit). Its revenue is up 48% over last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Avesoro Resources Inc. Been A Good Investment?
Given the total loss of 85% over three years, many shareholders in Avesoro Resources Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Avesoro Resources Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if Avesoro Resources insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 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.