It would be hard to discount the role that CEO Jeff Quartermaine has played in delivering the impressive results at Perseus Mining Limited (ASX:PRU) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 22 November 2022. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
Comparing Perseus Mining Limited's CEO Compensation With The Industry
According to our data, Perseus Mining Limited has a market capitalization of AU$3.0b, and paid its CEO total annual compensation worth AU$2.0m over the year to June 2022. That's a notable increase of 13% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$721k.
On examining similar-sized companies in the industry with market capitalizations between AU$1.5b and AU$4.8b, we discovered that the median CEO total compensation of that group was AU$1.7m. This suggests that Perseus Mining remunerates its CEO largely in line with the industry average. What's more, Jeff Quartermaine holds AU$4.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. Perseus Mining pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Perseus Mining Limited's Growth Numbers
Perseus Mining Limited has seen its earnings per share (EPS) increase by 196% a year over the past three years. It achieved revenue growth of 66% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Perseus Mining Limited Been A Good Investment?
We think that the total shareholder return of 160%, over three years, would leave most Perseus Mining 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.
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for Perseus Mining you should be aware of, and 1 of them doesn't sit too well with us.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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