Should You Worry About Jameson Resources Limited's (ASX:JAL) CEO Salary Level?
Art Palm became the CEO of Jameson Resources Limited (ASX:JAL) in 2013. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Jameson Resources
How Does Art Palm's Compensation Compare With Similar Sized Companies?
Our data indicates that Jameson Resources Limited is worth AU$53m, and total annual CEO compensation is AU$402k. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$357k. We examined a group of similar sized companies, with market capitalizations of below AU$296m. The median CEO total compensation in that group is AU$354k.
So Art Palm is paid around the average of the companies we looked at. 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 Jameson Resources, below.
Is Jameson Resources Limited Growing?
Jameson Resources Limited has increased its earnings per share (EPS) by an average of 78% a year, over the last three years (using a line of best fit). Its revenue is up 191% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Jameson Resources Limited Been A Good Investment?
Boasting a total shareholder return of 614% over three years, Jameson Resources Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Remuneration for Art Palm is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Jameson Resources.
If you want to buy a stock that is better than Jameson Resources, this free list of high return, low debt companies is a great place to look.
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 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. Thank you for reading.
