Darren Gordon became the CEO of Centaurus Metals Limited (ASX:CTM) in 2009. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 Darren Gordon's Compensation Compare With Similar Sized Companies?
According to our data, Centaurus Metals Limited has a market capitalization of AU$42m, and paid its CEO total annual compensation worth AU$433k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at AU$311k. We took a group of companies with market capitalizations below AU$301m, and calculated the median CEO total compensation to be AU$388k.
So Darren Gordon receives a similar amount to the median CEO pay, amongst 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.
The graphic below shows how CEO compensation at Centaurus Metals has changed from year to year.
Is Centaurus Metals Limited Growing?
Centaurus Metals Limited has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). Its revenue is down 28% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Centaurus Metals Limited Been A Good Investment?
I think that the total shareholder return of 43%, over three years, would leave most Centaurus Metals Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Darren Gordon is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Centaurus Metals insiders are buying or selling shares.
Important note: Centaurus Metals may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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.