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Hi V111JAS,
I've followed your comments on here and at Lekoil, obviously I've lost on both fronts.
Your knowledge is impeccable and has helped me pull out of both investments at an earlier stage.
Obviously Lekoil isn't finished business it may still quadruple and more, but radio silence is disturbing.
I'm seeking your advice, why not simply go for Pmo on a bad trade day same too for example Legal and General where without a gamble on a plus RNS they will go north.
Without actually gambling?
If you can reply I will receive your information with great respect.
Thanks
All the best
Benroy : Tanks , but that report is about two years old .
In essence it was critical fo DW`s then salary , the Company performance and shareholder return . BUT ~~~
Since then , we have been subjected to further dilution through several capital raises and worse still , Winx and now Charlie are both plugged and abandoned . Both outcomes have been financially destructive for shareholders ( DW is not a shareholder!)
In the mean time , suggested rebates from SOA have been receding further into the horizon .
Also during this time further valuable finances have been expended on additional acreage .
In this context if DW`s salary was `Generous above the Median` two years ago , perhaps today you might be forgiven for describing it as ~`Outrageous`.
That`s without considering the implications of this Global virus .
An ancient article I’ve seen on Yahoo I believe... Mcap is now a fraction of that, as ought to be daves pay packet!
He could do with issuing us all a statement of future plans, some reassurances (unsure where he’ll be hiding those) and just try to rectify the ship. He’s our captain, after all!
But a bounce almost a certainty over the coming two days. Long weekend ahead!
Is 88 Energy Limited's (ASX:88E) CEO Salary Justified?
In 2014 Dave Wall was appointed CEO of 88 Energy Limited (ASX:88E). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
Check out our latest analysis for 88 Energy
How Does Dave Wall's Compensation Compare With Similar Sized Companies?
According to our data, 88 Energy Limited has a market capitalization of AU$156m, and paid its CEO total annual compensation worth AU$550k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at AU$400k. We examined a group of similar sized companies, with market capitalizations of below AU$300m. The median CEO total compensation in that group is AU$380k.
Thus we can conclude that Dave Wall receives more in total compensation than the median of a group of companies in the same market, and of similar size to 88 Energy 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.
The graphic below shows how CEO compensation at 88 Energy has changed from year to year.
Is 88 Energy Limited Growing?
Over the last three years 88 Energy Limited has shrunk its earnings per share by an average of 3.3% per year (measured with a line of best fit). Its revenue is up 206% over last year.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has 88 Energy Limited Been A Good Investment?
Given the total loss of 43% over three years, many shareholders in 88 Energy Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount 88 Energy Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling 88 Energy (free visualization of insider trades)