Johan Dippenaar has been the CEO of Petra Diamonds Limited (LON:PDL) since 2005. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Johan Dippenaar’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Petra Diamonds Limited has a market cap of UK£320m, and is paying total annual CEO compensation of US$551k. (This is based on the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$371k. We examined companies with market caps from UK£158m to UK£630m, and discovered that the median CEO compensation of that group was UK£689k.
So Johan Dippenaar is paid around the average of 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 a visual representation of the CEO compensation at Petra Diamonds, below.
Is Petra Diamonds Limited Growing?
Petra Diamonds Limited has reduced its earnings per share by an average of 78% a year, over the last three years. It achieved revenue growth of 25% over the last year.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Petra Diamonds Limited Been A Good Investment?
Since shareholders would have lost about 45% over three years, some Petra Diamonds Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Johan Dippenaar is close enough to the median pay for a CEO of a similar sized company .
The company cannot boast particularly strong per share growth. And shareholder returns have been disappointing over the last three years. So suffice it to say we don’t think the compensation is modest! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Petra Diamonds (free visualization of insider trades).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.