Is White Rock Minerals Ltd's (ASX:WRM) CEO Paid Enough Relative To Peers?

In 2016 Matt Gill was appointed CEO of White Rock Minerals Ltd (ASX:WRM). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for White Rock Minerals

How Does Matt Gill's Compensation Compare With Similar Sized Companies?

According to our data, White Rock Minerals Ltd has a market capitalization of AU$8.3m, and paid its CEO total annual compensation worth AU$424k over the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$360k. We examined a group of similar sized companies, with market capitalizations of below AU$296m. The median CEO total compensation in that group is AU$383k.

So Matt Gill 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 White Rock Minerals, below.

Is White Rock Minerals Ltd Growing?

Over the last three years White Rock Minerals Ltd has grown its earnings per share (EPS) by an average of 46% per year (using a line of best fit). In the last year, its revenue is up 167%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 White Rock Minerals Ltd Been A Good Investment?

Given the total loss of 75% over three years, many shareholders in White Rock Minerals Ltd are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Matt Gill is paid around what is normal the leaders of comparable size companies.

We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling White Rock Minerals shares (free trial).

If you want to buy a stock that is better than White Rock Minerals, 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.