Shane Sikora became CEO of Rumble Resources Limited (ASX: RTR) in 2013. This report will first examine CEO compensation levels compared to CEO compensation in companies of similar size. After that, we will consider the growth of the business. Finally, we will reflect on the performance of ordinary shareholders in recent years, as a secondary measure of performance. This method should provide us with information to assess how well the company is paying the CEO.
See our latest analysis for Rumble Resources
How does Shane Sikora’s compensation compare to that of companies of similar size?
At the time of this writing, our data indicates that Rumble Resources Limited has a market capitalization of AU $ 29 million and has declared a total annual CEO compensation of AU $ 219,000 for the year until June 2019. as this analysis focuses on total compensation, it should be noted the salary is lower, valued at 196,000 Australian dollars. We looked at a group of companies with market capitalizations below A $ 317 million, and the total median CEO compensation was A $ 387 thousand.
The composition of the compensation tells us a lot about how a company operates compared to the industry as a whole, and it is no different in the case of Rumble Resources. At the industry level, around 69% of total compensation represents salary and 31% other compensation. It therefore seems that there is no significant difference between Rumble Resources and the market in general, in terms of the distribution of wages in all remuneration.
At first glance, this seems to be a real advantage for shareholders, since Shane Sikora is paid less than the average total compensation paid by companies of similar size. While positive, it is important that we look at the performance of the real business. The graph below shows how the compensation of the CEO of Rumble Resources has changed from year to year.
Is Rumble Resources Limited Growing?
Rumble Resources Limited has reduced earnings per share on average by 6.0% per year over the past three years (measured with a line of best fit). He has achieved 287% revenue growth in the past year.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a better future. In conclusion, we cannot yet form a solid opinion on the performance of companies; but it’s worth watching. We don’t have analyst forecasts, but you may want to evaluate this data-rich visualization of revenue, revenue, and cash flow.
Was Rumble Resources Limited a good investment?
I think the total shareholder return of 171% over three years would make most of the shareholders of Rumble Resources Limited smile. This good performance could mean that some shareholders do not care that the CEO is paid more than normal for a company of its size.
Rumble Resources Limited appears to be paying its CEO below most companies of similar size.
It is interesting to note that if Shane Sikora is paid below what is normal in companies of similar size, the returns have been very satisfactory over the past three years. Although we can see higher growth, we would say that the compensation is modest, based on these observations. CEO compensation is an important area to watch, but we have also identified 7 warning signs for Rumble Resources (3 make us uncomfortable!) That you should know before investing here.
It can be said that the quality of the business is much more important than the compensation levels of CEOs. So look at this free list of interesting companies, which have a high return on equity and low debt.
If you spot an error that merits correction, please contact the publisher at [email protected] This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell securities and does not take into account your objectives or your financial situation. Simply Wall St has no position in the stocks mentioned.
Our goal is to provide you with long-term targeted research analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive corporate announcements or qualitative material. Thanks for the reading.
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