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Randal Swick is the CEO of Cougar Metals NL (ASX:CGM). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Cougar Metals
How Does Randal Swick's Compensation Compare With Similar Sized Companies?
According to our data, Cougar Metals NL has a market capitalization of AU$1.2m, and pays its CEO total annual compensation worth AU$218k. (This number is for the twelve months until June 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$218k. We took a group of companies with market capitalizations below AU$289m, and calculated the median CEO total compensation to be AU$358k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Cougar Metals, below.
Is Cougar Metals NL Growing?
Cougar Metals NL has reduced its earnings per share by an average of 2.3% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -200%.
In the last three years the company has failed to grow earnings per share. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Cougar Metals NL Been A Good Investment?
Given the total loss of 50% over three years, many shareholders in Cougar Metals NL 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...
It looks like Cougar Metals NL pays its CEO less than similar sized companies.
Randal Swick is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. Considering all these factors, we'd stop short of saying the CEO pay is too high, but we don't think shareholders would want to see a pay rise before business performance improves. Shareholders may want to check for free if Cougar Metals insiders are buying or selling shares.