Eric McCrady has been the CEO of Sundance Energy Australia Limited (ASX:SEA) since 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Eric McCrady’s Compensation Compare With Similar Sized Companies?
According to our data, Sundance Energy Australia Limited has a market capitalization of AU$481m, and pays its CEO total annual compensation worth US$1.0m. That’s actually a decrease on the year before. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO compensation was US$808k.
That means Eric McCrady 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, below, how CEO compensation at Sundance Energy Australia has changed over time.
Is Sundance Energy Australia Limited Growing?
On average over the last three years, Sundance Energy Australia Limited has grown earnings per share (EPS) by 53% each year. In the last year, its revenue is up 32%.
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.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Sundance Energy Australia Limited Been A Good Investment?
Since shareholders would have lost about 74% over three years, some Sundance Energy Australia Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Eric McCrady is close enough to the median pay for a CEO of a similar sized company .
We’d say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Sundance Energy Australia Limited shares (free trial).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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.