Yahoo Finance How Much is European Metals Holdings Limited's (ASX:EMH) CEO Getting Paid?
In 2013 Keith Coughlan was appointed CEO of European Metals Holdings Limited (ASX:EMH). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for European Metals Holdings
How Does Keith Coughlan's Compensation Compare With Similar Sized Companies?
According to our data, European Metals Holdings Limited has a market capitalization of AU$32m, and paid its CEO total annual compensation worth AU$301k over the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$240k. We took a group of companies with market capitalizations below AU$324m, and calculated the median CEO total compensation to be AU$390k.
So Keith Coughlan receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at European Metals Holdings, below.
Is European Metals Holdings Limited Growing?
On average over the last three years, European Metals Holdings Limited has grown earnings per share (EPS) by 11% each year (using a line of best fit). It saw its revenue drop 25% over the last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has European Metals Holdings Limited Been A Good Investment?
With a three year total loss of 80%, European Metals Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Keith Coughlan is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Shifting gears from CEO pay for a second, we've spotted 7 warning signs for European Metals Holdings you should be aware of, and 3 of them are a bit unpleasant.
If you want to buy a stock that is better than European Metals Holdings, this free list of high return, low debt companies is a great place to look.
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.
