Yahoo Finance Shareholders Will Probably Not Have Any Issues With Alara Resources Limited's (ASX:AUQ) CEO Compensation
Key Insights
Alara Resources' Annual General Meeting to take place on 28th of November
Salary of AU$355.7k is part of CEO Atmavireshwar Sthapak's total remuneration
The total compensation is similar to the average for the industry
Alara Resources' total shareholder return over the past three years was 125% while its EPS was down 43% over the past three years
Performance at Alara Resources Limited (ASX:AUQ) has been reasonably good and CEO Atmavireshwar Sthapak has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 28th of November. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
See our latest analysis for Alara Resources
Comparing Alara Resources Limited's CEO Compensation With The Industry
At the time of writing, our data shows that Alara Resources Limited has a market capitalization of AU$32m, and reported total annual CEO compensation of AU$415k for the year to June 2023. We note that's an increase of 21% above last year. Notably, the salary which is AU$355.7k, represents most of the total compensation being paid.
On comparing similar-sized companies in the Australian Metals and Mining industry with market capitalizations below AU$305m, we found that the median total CEO compensation was AU$387k. From this we gather that Atmavireshwar Sthapak is paid around the median for CEOs in the industry. What's more, Atmavireshwar Sthapak holds AU$174k worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$356k | AU$291k | 86% |
Other | AU$59k | AU$51k | 14% |
Total Compensation | AU$415k | AU$342k | 100% |
On an industry level, around 61% of total compensation represents salary and 39% is other remuneration. It's interesting to note that Alara Resources pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Alara Resources Limited's Growth Numbers
Alara Resources Limited has reduced its earnings per share by 43% a year over the last three years. In the last year, its revenue is up 126%.
The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Alara Resources Limited Been A Good Investment?
Most shareholders would probably be pleased with Alara Resources Limited for providing a total return of 125% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.
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. We identified 5 warning signs for Alara Resources (3 are significant!) that you should be aware of before investing here.
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.
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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.
