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This article will reflect on the compensation paid to Iván Arriagada Herrera who has served as CEO of Antofagasta plc (LON:ANTO) since 2016. This analysis will also assess whether Antofagasta pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Iván Arriagada Herrera Compare With Other Companies In The Industry?
At the time of writing, our data shows that Antofagasta plc has a market capitalization of UK£10b, and reported total annual CEO compensation of US$2.7m for the year to December 2019. That's a notable increase of 8.8% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$640k.
For comparison, other companies in the industry with market capitalizations above UK£6.3b, reported a median total CEO compensation of US$2.1m. So it looks like Antofagasta compensates Iván Arriagada Herrera in line with the median for the industry.
On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. In Antofagasta's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Antofagasta plc's Growth Numbers
Antofagasta plc's earnings per share (EPS) grew 61% per year over the last three years. Its revenue is up 4.9% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Antofagasta plc Been A Good Investment?
With a total shareholder return of 30% over three years, Antofagasta plc shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
As previously discussed, Iván is compensated close to the median for companies of its size, and which belong to the same industry. But earnings growth for the company has been strong over the last three years, though shareholder returns in comparison haven't been as impressive. Considering overall performance, we'd say the compensation is fair, although stockholders will want to see higher returns moving forward.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Antofagasta that investors should look into moving forward.
Switching gears from Antofagasta, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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