Yahoo Finance How Should Investors React To Europa Oil & Gas (Holdings) plc’s (LON:EOG) CEO Pay?
Hugh G. Mackay became the CEO of Europa Oil & Gas (Holdings) plc (LON:EOG) in 2011. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Europa Oil & Gas (Holdings)
How Does Hugh G. Mackay’s Compensation Compare With Similar Sized Companies?
Our data indicates that Europa Oil & Gas (Holdings) plc is worth UK£11m, and total annual CEO compensation is UK£187k. That’s actually a decrease on the year before. We examined a group of similar sized companies, with market capitalizations of below UK£156m. The median CEO compensation in that group is UK£243k.
So Hugh G. Mackay receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Europa Oil & Gas (Holdings), below.
Is Europa Oil & Gas (Holdings) plc Growing?
On average over the last three years, Europa Oil & Gas (Holdings) plc has grown earnings per share (EPS) by 18% each year. It achieved revenue growth of 4.1% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Europa Oil & Gas (Holdings) plc Been A Good Investment?
Given the total loss of 2.4% over three years, many shareholders in Europa Oil & Gas (Holdings) plc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
Hugh G. Mackay is paid around what is normal the leaders of comparable size companies.
We’d say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
