Yahoo Finance Is Silver Mines Limited (ASX:SVL) Excessively Paying Its CEO?
In 2016, Anthony McClure was appointed CEO of Silver Mines Limited (ASX:SVL). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Silver Mines
How Does Anthony McClure's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Silver Mines Limited has a market cap of AU$76m, and reported total annual CEO compensation of AU$347k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$317k. We took a group of companies with market capitalizations below AU$314m, and calculated the median CEO total compensation to be AU$390k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 69% of total compensation out of all the companies we analysed, while other remuneration made up 31% of the pie. According to our research, Silver Mines has allocated a higher percentage of pay to salary in comparison to the broader sector.
That means Anthony McClure receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see a visual representation of the CEO compensation at Silver Mines, below.
Is Silver Mines Limited Growing?
On average over the last three years, Silver Mines Limited has seen earnings per share (EPS) move in a favourable direction by 68% each year (using a line of best fit). Its revenue is down 63% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Silver Mines Limited Been A Good Investment?
Given the total loss of 36% over three years, many shareholders in Silver Mines Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Anthony McClure is paid around the same as most CEOs of similar size companies.
We'd say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Taking a breather from CEO compensation, we've spotted 5 warning signs for Silver Mines (of which 1 doesn't sit too well with us!) you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
