Yahoo Finance Is Beacon Minerals Limited's (ASX:BCN) CEO Paid Enough Relative To Peers?
In 2012 Graham McGarry was appointed CEO of Beacon Minerals Limited (ASX:BCN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Beacon Minerals
How Does Graham McGarry's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Beacon Minerals Limited has a market cap of AU$80m, and reported total annual CEO compensation of AU$164k for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$150k. We examined a group of similar sized companies, with market capitalizations of below AU$324m. The median CEO total compensation in that group is AU$390k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Beacon Minerals, below.
Is Beacon Minerals Limited Growing?
Beacon Minerals Limited has reduced its earnings per share by an average of 74% a year, over the last three years (measured with a line of best fit). Its revenue is up 299% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Beacon Minerals Limited Been A Good Investment?
I think that the total shareholder return of 33%, over three years, would leave most Beacon Minerals 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...
It appears that Beacon Minerals Limited remunerates its CEO below most similar sized companies.
Graham McGarry is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. CEO compensation is an important area to keep your eyes on, but we've also identified 6 warning signs for Beacon Minerals (1 shouldn't be ignored!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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