Yahoo Finance Does The New Zealand Refining Company Limited's (NZSE:NZR) CEO Salary Compare Well With Others?
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The CEO of The New Zealand Refining Company Limited (NZSE:NZR) is Mike Fuge. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.
View our latest analysis for New Zealand Refining
How Does Mike Fuge's Compensation Compare With Similar Sized Companies?
According to our data, The New Zealand Refining Company Limited has a market capitalization of NZ$656m, and pays its CEO total annual compensation worth NZ$1.1m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at NZ$316k. When we examined a selection of companies with market caps ranging from NZ$294m to NZ$1.2b, we found the median CEO total compensation was NZ$630k.
Thus we can conclude that Mike Fuge receives more in total compensation than the median of a group of companies in the same market, and of similar size to The New Zealand Refining Company Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at New Zealand Refining has changed over time.
Is The New Zealand Refining Company Limited Growing?
The New Zealand Refining Company Limited has reduced its earnings per share by an average of 41% a year, over the last three years (measured with a line of best fit). It saw its revenue drop -12% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has The New Zealand Refining Company Limited Been A Good Investment?
Since shareholders would have lost about 20% over three years, some The New Zealand Refining Company Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by The New Zealand Refining Company Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Over the same period, investors would have come away with nothing in the way of share price gains. Some might well form the view that the CEO is paid too generously! So you may want to check if insiders are buying New Zealand Refining shares with their own money (free access).
If you want to buy a stock that is better than New Zealand Refining, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
