【airwaav vs new age】Is Genesis Energy Limited’s (NZSE:GNE) CEO Pay Justified?

Marc England has been the CEO of Genesis airwaav vs new ageEnergy Limited (

NZSE:GNE

) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Genesis Energy

How Does Marc England’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Genesis Energy Limited has a market cap of NZ$2.6b, and is paying total annual CEO compensation of NZ$1.6m. (This number is for the twelve months until 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at NZ$1.1m. We looked at a group of companies with market capitalizations from NZ$1.5b to NZ$4.8b, and the median CEO compensation was NZ$2.2m.

So Marc England 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.

The graphic below shows how CEO compensation at Genesis Energy has changed from year to year.

NZSE:GNE CEO Compensation January 2nd 19

Is Genesis Energy Limited Growing?

Genesis Energy Limited has reduced its earnings per share by an average of 13% a year, over the last three years. It achieved revenue growth of 18% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. 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 Genesis Energy Limited Been A Good Investment?

Boasting a total shareholder return of 76% over three years, Genesis Energy Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Marc England is paid around the same as most CEOs of similar size companies.

We feel that earnings per share have been a bit disappointing, but it’s nice to see positive shareholder returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. Whatever your view on compensation, you might want to

check if insiders are buying or selling Genesis Energy shares (free trial).

Story continues

Or you might rather take a peek

at

this

analytical visualization

of historic cash flow, earnings and revenue

.

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

[email protected]

.

View comments