Frank Bracken became the CEO of Lonestar Resources US Inc. (NASDAQ:LONE) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Frank Bracken's Compensation Compare With Similar Sized Companies?
Our data indicates that Lonestar Resources US Inc. is worth US$66m, and total annual CEO compensation is US$2.2m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$600k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$487k.
It would therefore appear that Lonestar Resources US Inc. pays Frank Bracken 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Lonestar Resources US has changed from year to year.
Is Lonestar Resources US Inc. Growing?
On average over the last three years, Lonestar Resources US Inc. has grown earnings per share (EPS) by 69% each year (using a line of best fit). It achieved revenue growth of 49% over the 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Lonestar Resources US Inc. Been A Good Investment?
With a three year total loss of 79%, Lonestar Resources US Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Lonestar Resources US Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Lonestar Resources US.
Important note: Lonestar Resources US 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.
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.