Yahoo Finance Should You Be Pleased About The CEO Pay At Taruga Minerals Limited's (ASX:TAR)
Mark Gasson is the CEO of Taruga Minerals Limited (ASX:TAR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Taruga Minerals
How Does Mark Gasson's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Taruga Minerals Limited has a market cap of AU$3.2m, and reported total annual CEO compensation of AU$386k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$148k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined a group of similar sized companies, with market capitalizations of below AU$309m. The median CEO total compensation in that group is AU$390k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Taruga Minerals. On a sector level, around 69% of total compensation represents salary and 31% is other remuneration. Taruga Minerals sets aside a smaller share of compensation for salary, in comparison to the overall industry.
That means Mark Gasson receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see, below, how CEO compensation at Taruga Minerals has changed over time.
Is Taruga Minerals Limited Growing?
Taruga Minerals Limited has reduced its earnings per share by an average of 18% a year, over the last three years (measured with a line of best fit). Its revenue is down 77% over last year.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Taruga Minerals Limited Been A Good Investment?
With a three year total loss of 74%, Taruga Minerals Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Mark Gasson is paid around the same as most CEOs of similar size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don't think the CEO is underpaid! On another note, Taruga Minerals has 6 warning signs (and 3 which are a bit unpleasant) we think you should know about.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.
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