Kevin Malaxos became the CEO of Maximus Resources Limited (ASX:MXR) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Kevin Malaxos's Compensation Compare With Similar Sized Companies?
According to our data, Maximus Resources Limited has a market capitalization of AU$2.3m, and pays its CEO total annual compensation worth AU$246k. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$167k. We took a group of companies with market capitalizations below AU$282m, and calculated the median CEO total compensation to be AU$356k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Maximus Resources has changed over time.
Is Maximus Resources Limited Growing?
Over the last three years Maximus Resources Limited has grown its earnings per share (EPS) by an average of 34% per year (using a line of best fit). It achieved revenue growth of 69% 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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Maximus Resources Limited Been A Good Investment?
With a three year total loss of 87%, Maximus Resources Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
It appears that Maximus Resources Limited remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. So while we don't think, Kevin Malaxos is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.
This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. So you may want to check if insiders are buying Maximus Resources shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 firstname.lastname@example.org. 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.