Here's What We Think About Australian Silica Quartz Group Ltd.'s (ASX:ASQ) CEO Pay
Sam Middlemas became the CEO of Australian Silica Quartz Group Ltd. (ASX:ASQ) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Australian Silica Quartz Group
How Does Sam Middlemas's Compensation Compare With Similar Sized Companies?
According to our data, Australian Silica Quartz Group Ltd. has a market capitalization of AU$7.7m, and paid its CEO total annual compensation worth AU$210k over the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at . Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We took a group of companies with market capitalizations below AU$291m, and calculated the median CEO total compensation to be AU$380k.
Most shareholders would consider it a positive that Sam Middlemas takes less total compensation than the CEOs of most similar size companies, leaving more 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 a visual representation of the CEO compensation at Australian Silica Quartz Group, below.
Is Australian Silica Quartz Group Ltd. Growing?
On average over the last three years, Australian Silica Quartz Group Ltd. has shrunk earnings per share by 2.5% each year (measured with a line of best fit). In the last year, its revenue is up 31%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Australian Silica Quartz Group Ltd. Been A Good Investment?
Australian Silica Quartz Group Ltd. has generated a total shareholder return of 24% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
It appears that Australian Silica Quartz Group Ltd. remunerates its CEO below most similar sized companies.
It's well worth noting that while Sam Middlemas is paid less than most company leaders (at companies of similar size), share price performance has been somewhat uninspiring. So shareholders may not be elated, but they shouldn't be worried about the CEO compensation, either. Whatever your view on compensation, you might want to check if insiders are buying or selling Australian Silica Quartz Group shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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.
