Yahoo Finance Our Take On Silver Lake Resources Limited's (ASX:SLR) CEO Salary
Luke Tonkin became the CEO of Silver Lake Resources Limited (ASX:SLR) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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 Silver Lake Resources
How Does Luke Tonkin's Compensation Compare With Similar Sized Companies?
According to our data, Silver Lake Resources Limited has a market capitalization of AU$614m, and pays its CEO total annual compensation worth AU$1.3m. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$648k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$280m to AU$1.1b. The median total CEO compensation was AU$1.0m.
That means Luke Tonkin 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.
The graphic below shows how CEO compensation at Silver Lake Resources has changed from year to year.
Is Silver Lake Resources Limited Growing?
Over the last three years Silver Lake Resources Limited has grown its earnings per share (EPS) by an average of 115% per year (using a line of best fit). In the last year, its revenue is up 11%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Silver Lake Resources Limited Been A Good Investment?
Boasting a total shareholder return of 124% over three years, Silver Lake Resources Limited has done well by shareholders. 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.
In Summary...
Luke Tonkin is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Silver Lake Resources.
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.
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.
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. Thank you for reading.
