Yahoo Finance A Quick Analysis On PNX Metals' (ASX:PNX) CEO Compensation
This article will reflect on the compensation paid to James Fox who has served as CEO of PNX Metals Limited (ASX:PNX) since 2012. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for PNX Metals
How Does Total Compensation For James Fox Compare With Other Companies In The Industry?
At the time of writing, our data shows that PNX Metals Limited has a market capitalization of AU$18m, and reported total annual CEO compensation of AU$352k for the year to June 2020. That's a notable increase of 8.7% on last year. In particular, the salary of AU$276.1k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below AU$265m, we found that the median total CEO compensation was AU$311k. From this we gather that James Fox is paid around the median for CEOs in the industry.
Component | 2020 | 2019 | Proportion (2020) |
Salary | AU$276k | AU$276k | 78% |
Other | AU$76k | AU$48k | 22% |
Total Compensation | AU$352k | AU$324k | 100% |
Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. According to our research, PNX Metals has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
PNX Metals Limited's Growth
PNX Metals Limited's earnings per share (EPS) grew 75% per year over the last three years. It achieved revenue growth of 16% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 PNX Metals Limited Been A Good Investment?
With a three year total loss of 45% for the shareholders, PNX Metals Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As previously discussed, James is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. But on the bright side, EPS growth is positive over the same period. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for PNX Metals (1 is potentially serious!) that you should be aware of before investing here.
Switching gears from PNX Metals, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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