Rebecca Holland-Kennedy has been the CEO of PepinNini Minerals Limited (ASX:PNN) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether PepinNini Minerals pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Rebecca Holland-Kennedy Compare With Other Companies In The Industry?
According to our data, PepinNini Minerals Limited has a market capitalization of AU$2.9m, and paid its CEO total annual compensation worth AU$196k over the year to June 2020. This means that the compensation hasn't changed much from last year. In particular, the salary of AU$174.8k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below AU$277m, reported a median total CEO compensation of AU$309k. This suggests that Rebecca Holland-Kennedy is paid below the industry median. Furthermore, Rebecca Holland-Kennedy directly owns AU$317k worth of shares in the company.
On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. PepinNini Minerals pays out 89% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
PepinNini Minerals Limited's Growth
PepinNini Minerals Limited's earnings per share (EPS) grew 40% per year over the last three years. In the last year, its revenue is up 39%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has PepinNini Minerals Limited Been A Good Investment?
Since shareholders would have lost about 87% over three years, some PepinNini Minerals Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
As previously discussed, Rebecca is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth over three years is certainly impressive. Considering EPS are on the up, we would say Rebecca is compensated fairly. But we believe shareholders would want to see healthier returns before the CEO gets a raise.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 2 which don't sit too well with us) in PepinNini Minerals we think you should know about.
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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