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Roger Mason became the CEO of Antipa Minerals Limited (ASX:AZY) in 2011, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Roger Mason Compare With Other Companies In The Industry?
According to our data, Antipa Minerals Limited has a market capitalization of AU$146m, and paid its CEO total annual compensation worth AU$504k over the year to June 2020. Notably, that's an increase of 25% over the year before. We note that the salary portion, which stands at AU$300.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below AU$277m, reported a median total CEO compensation of AU$310k. Accordingly, our analysis reveals that Antipa Minerals Limited pays Roger Mason north of the industry median. Furthermore, Roger Mason directly owns AU$812k worth of shares in the company, implying that they are deeply invested in the company's success.
Talking in terms of the industry, salary represented approximately 70% of total compensation out of all the companies we analyzed, while other remuneration made up 30% of the pie. In Antipa Minerals' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Antipa Minerals Limited's Growth
Antipa Minerals Limited has seen its earnings per share (EPS) increase by 13% a year over the past three years. It achieved revenue growth of 289% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Antipa Minerals Limited Been A Good Investment?
Most shareholders would probably be pleased with Antipa Minerals Limited for providing a total return of 171% over three years. 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.
As we noted earlier, Antipa Minerals pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Roger's performance creates value for the company.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Antipa Minerals (of which 2 are significant!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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.
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