Yahoo Finance How Much is Pacifico Minerals Limited's (ASX:PMY) CEO Getting Paid?
In 2013 Simon Noon was appointed CEO of Pacifico Minerals Limited (ASX:PMY). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Pacifico Minerals
How Does Simon Noon's Compensation Compare With Similar Sized Companies?
Our data indicates that Pacifico Minerals Limited is worth AU$12m, and total annual CEO compensation was reported as AU$288k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$210k. We took a group of companies with market capitalizations below AU$313m, and calculated the median CEO total compensation to be AU$389k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 69% of total compensation represents salary and 31% is other remuneration. Pacifico Minerals does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
So Simon Noon is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. The graphic below shows how CEO compensation at Pacifico Minerals has changed from year to year.
Is Pacifico Minerals Limited Growing?
On average over the last three years, Pacifico Minerals Limited has seen earnings per share (EPS) move in a favourable direction by 14% each year (using a line of best fit). In the last year, its revenue is up 473%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Pacifico Minerals Limited Been A Good Investment?
Since shareholders would have lost about 43% over three years, some Pacifico Minerals Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Simon Noon is paid around what is normal for the leaders of comparable size companies.
We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Shifting gears from CEO pay for a second, we've spotted 7 warning signs for Pacifico Minerals you should be aware of, and 5 of them shouldn't be ignored.
Important note: Pacifico Minerals may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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. Thank you for reading.
