Graeme Drew is the CEO of AusQuest Limited (ASX:AQD), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for AusQuest.

Check out our latest analysis for AusQuest

Comparing AusQuest Limited's CEO Compensation With the industry

According to our data, AusQuest Limited has a market capitalization of AU$20m, and paid its CEO total annual compensation worth AU$219k over the year to June 2020. That's mostly flat as compared to the prior year's compensation. In particular, the salary of AU$200.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under AU$278m, the reported median total CEO compensation was AU$302k. This suggests that AusQuest remunerates its CEO largely in line with the industry average. What's more, Graeme Drew holds AU$508k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. AusQuest is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion – which is generally tied to performance, is lower.

AusQuest Limited's Growth

AusQuest Limited has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is down 44%.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has AusQuest Limited Been A Good Investment?

We think that the total shareholder return of 76%, over three years, would leave most AusQuest Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

As we touched on above, AusQuest Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. The company is growing EPS and total shareholder returns have been pleasing. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 5 warning signs for AusQuest you should be aware of, and 2 of them are a bit concerning.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

THUNDER BAY, Ontario, Sept. 22, 2020 (GLOBE NEWSWIRE) — Mr. Pierre Gagné, Mr. Chris Dougherty and Mr. Donald Sheldon announce that on September 18, 2020 Mr. Gagné acquired ownership of or control over an additional 6,048,350 common shares (each, a “Common Share”) in the capital of MetalCorp Limited (“MetalCorp” or the “Issuer”) (TSXV: MTC), Mr. Dougherty acquired ownership of or control over an additional 6,740,166 Common Shares and Mr. Sheldon acquired ownership of or control over an additional 7,585,835 Common Shares, respectively, at a price of $0.03 per Common Share through settlement of debts with the Issuer.

Prior to acquiring such Common Shares, (i) Mr. Gagné owned or controlled 16,610,382 Common Shares representing approximately 16.95% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would have represented approximately 2.04% of the issued and outstanding Common Shares, (ii) Mr. Dougherty owned or controlled 7,842,830 Common Shares representing approximately 8.00% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would have represented approximately 2.04% of the issued and outstanding Common Shares, and (iii) Mr. Sheldon owned or controlled 1,365,707 Common Shares representing approximately 1.39% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would have represented approximately 2.04% of the issued and outstanding Common Shares, provided that, for the purposes of National Instrument 62-104, Mr. Sheldon is deemed to beneficially own 3,809,610 Common Shares which Mr. Sheldon or entities which he controls lent to the Issuer in 2019 and 2013 and, accordingly, for the purposes of National Instrument 62-104, Mr. Sheldon is considered to have had ownership, control and beneficial ownership of 5,175,317 Common Shares representing approximately 5.28% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would have represented approximately 2.04% of the issued and outstanding Common Shares (calculated on a diluted basis).

As a result of the above-noted acquisition, (i) Mr. Gagné now owns or controls 22,658,732 Common Shares representing approximately 18.96% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would represent approximately 1.57% of the issued and outstanding Common Shares (calculated on a diluted basis), (ii) Mr. Dougherty now owns or controls 14,582,996 Common Shares representing approximately 12.20% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would represent approximately 1.57% of the issued and outstanding Common Shares (calculated on a diluted basis) and (iii) Mr. Sheldon now owns or controls 8,951,542 Common Shares representing approximately 7.49% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would represent approximately 1.57% of the issued and outstanding Common Shares (calculated on a diluted basis) provided that, for the purposes of National Instrument 62-104, Mr. Sheldon is now considered to have ownership, control and beneficial ownership of 12,761,152 Common Shares representing approximately 10.68% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would represent approximately 1.57% of the issued and outstanding Common Shares (calculated on a diluted basis).

Mr. Gagné Mr. Dougherty and Mr. Sheldon have no present intention of acquiring additional securities of MetalCorp (other than with respect to the proposed acquisition of 729,500 Common Shares by Pierre Gagné Contracting Ltd. conditional on approval by disinterested shareholders of the Issuer which is being sought at a shareholders meeting currently scheduled to be held on December 8, 2020). Depending upon their evaluation of the business, prospects and financial condition of the Issuer, the market for the Issuer’s securities, general economic and tax conditions and other factors, any of them or entities controlled by them may acquire more or sell some or all of their MetalCorp securities.

The shares-for-debt transactions were entered into for the purpose of assisting MetalCorp in reducing its debts and liabilities at a time when it did not have the cash or other resources to pay such debts and liabilities and thereby assist MetalCorp in reducing its working capital deficiency and enabling it to use its limited cash and other financial resources for ongoing operations and other obligations.

MetalCorp relied on the prospectus exemption provided in the National Instrument 45-106, section 2.14 – Securities for Debt in respect of its issuance of the Common Shares.

For more information and to obtain a copy of the early warning reports required by securities legislation and filed on SEDAR under MetalCorp’s company profile at www.sedar.com, please contact:

Pierre Gagné, director of MetalCorp Limited
Telephone: (807) 626-3621
Chris Dougherty, director of MetalCorp Limited
Telephone: (807) 683-1730
Donald Sheldon, Chief Executive Officer and a director of MetalCorp Limited
Telephone: (416) 777-4017
c/o MetalCorp Limited
490 Maureen Street
Thunder Bay, Ontario P7B 6T2

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in RBR Group Limited (ASX:RBR).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for RBR Group

RBR Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Athol Emerton bought AU$70k worth of shares at a price of AU$0.014 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.01). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months RBR Group insiders were buying shares, but not selling. They paid about AU$0.01 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

RBR Group Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at RBR Group. Insiders shelled out AU$65k for shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Does RBR Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that RBR Group insiders own 36% of the company, worth about AU$3.6m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About RBR Group Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of RBR Group we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 6 warning signs for RBR Group you should be aware of, and 4 of them are a bit concerning.

But note: RBR Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

If you want to know who really controls Poseidon Nickel Limited (ASX:POS), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

Poseidon Nickel is not a large company by global standards. It has a market capitalization of AU$143m, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Poseidon Nickel.

View our latest analysis for Poseidon Nickel

What Does The Institutional Ownership Tell Us About Poseidon Nickel?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Poseidon Nickel. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Poseidon Nickel, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Poseidon Nickel. Black Mountain Metals LLC is currently the company's largest shareholder with 21% of shares outstanding. For context, the second largest shareholder holds about 13% of the shares outstanding, followed by an ownership of 4.8% by the third-largest shareholder.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Poseidon Nickel

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own some shares in Poseidon Nickel Limited. In their own names, insiders own AU$5.4m worth of stock in the AU$143m company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public, with a 40% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 22%, of the Poseidon Nickel stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Poseidon Nickel (of which 1 makes us a bit uncomfortable!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

Whilst it may not be a huge deal, we thought it was good to see that the Oklo Resources Limited (ASX:OKU) MD, CEO & Director, Simon Taylor, recently bought AU$103k worth of stock, for AU$0.26 per share. However, it only increased their shares held by 7.3%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Oklo Resources

The Last 12 Months Of Insider Transactions At Oklo Resources

Notably, that recent purchase by Simon Taylor is the biggest insider purchase of Oklo Resources shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.30. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Oklo Resources insiders decided to buy shares at close to current prices.

Oklo Resources insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.20. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Oklo Resources is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Oklo Resources

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Oklo Resources insiders own about AU$17m worth of shares. That equates to 11% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Oklo Resources Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Oklo Resources shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Oklo Resources. Case in point: We've spotted 4 warning signs for Oklo Resources you should be aware of, and 2 of them shouldn't be ignored.

But note: Oklo Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.