Nigel Forrester is the CEO of Mount Burgess Mining N.L. (ASX:MTB). 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. 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.
How Does Nigel Forrester's Compensation Compare With Similar Sized Companies?
According to our data, Mount Burgess Mining N.L. has a market capitalization of AU$1.6m, and paid its CEO total annual compensation worth AU$211k over the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$173k. We took a group of companies with market capitalizations below AU$290m, and calculated the median CEO total compensation to be AU$378k.
A first glance this seems like a real positive for shareholders, since Nigel Forrester is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Mount Burgess Mining has changed from year to year.
Is Mount Burgess Mining N.L. Growing?
Mount Burgess Mining N.L. has increased its earnings per share (EPS) by an average of 33% a year, over the last three years (using a line of best fit). In the last year, the company lost virtually all of its revenue.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Mount Burgess Mining N.L. Been A Good Investment?
Given the total loss of 83% over three years, many shareholders in Mount Burgess Mining N.L. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Mount Burgess Mining N.L. is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. We're not critical of the remuneration Nigel Forrester receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. Whatever your view on compensation, you might want to check if insiders are buying or selling Mount Burgess Mining shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.