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Is San Leon Energy plc's (LON:SLE) CEO Pay Justified?

Simply Wall St
·3 min read

In 2016 Oisín Fanning was appointed CEO of San Leon Energy plc (LON:SLE). 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 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.

Check out our latest analysis for San Leon Energy

How Does Oisín Fanning's Compensation Compare With Similar Sized Companies?

Our data indicates that San Leon Energy plc is worth UK£116m, and total annual CEO compensation was reported as US$1.6m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$424k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined a group of similar sized companies, with market capitalizations of below €184m. The median CEO total compensation in that group is €298k.

It would therefore appear that San Leon Energy plc pays Oisín Fanning more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. 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 San Leon Energy has changed over time.

AIM:SLE CEO Compensation, February 24th 2020
AIM:SLE CEO Compensation, February 24th 2020

Is San Leon Energy plc Growing?

San Leon Energy plc has increased its earnings per share (EPS) by an average of 142% a year, over the last three years (using a line of best fit). It saw its revenue drop 43% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has San Leon Energy plc Been A Good Investment?

Given the total loss of 53% over three years, many shareholders in San Leon Energy plc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by San Leon Energy plc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if San Leon Energy insiders are buying or selling shares.

If you want to buy a stock that is better than San Leon Energy, 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.