Mike Hodgson became the CEO of Serabi Gold plc (LON:SRB) in 2007. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Mike Hodgson’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Serabi Gold plc has a market cap of UK£22m, and is paying total annual CEO compensation of US$463k. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$221k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$313k.
As you can see, Mike Hodgson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Serabi Gold plc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Serabi Gold has changed over time.
Is Serabi Gold plc Growing?
On average over the last three years, Serabi Gold plc has shrunk earnings per share by 73% each year. Its revenue is down -2.7% over last year.
Unfortunately, earnings per share have trended lower over the last three years. 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.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Serabi Gold plc Been A Good Investment?
With a three year total loss of 43%, Serabi Gold plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount Serabi Gold plc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Serabi Gold shares (free trial).
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 firstname.lastname@example.org.