Yahoo Finance We Think Antilles Gold Limited's (ASX:AAU) CEO Compensation Looks Fair
The performance at Antilles Gold Limited (ASX:AAU) has been quite strong recently and CEO James Tyers has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 30 July 2021. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
View our latest analysis for Antilles Gold
How Does Total Compensation For James Tyers Compare With Other Companies In The Industry?
At the time of writing, our data shows that Antilles Gold Limited has a market capitalization of AU$18m, and reported total annual CEO compensation of US$269k for the year to December 2020. That is, the compensation was roughly the same as last year. In particular, the salary of US$251.9k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under AU$271m, the reported median total CEO compensation was US$222k. So it looks like Antilles Gold compensates James Tyers in line with the median for the industry.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$252k | US$254k | 93% |
Other | US$18k | US$18k | 7% |
Total Compensation | US$269k | US$272k | 100% |
On an industry level, roughly 70% of total compensation represents salary and 30% is other remuneration. It's interesting to note that Antilles Gold pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Antilles Gold Limited's Growth Numbers
Antilles Gold Limited has seen its earnings per share (EPS) increase by 91% a year over the past three years. Its revenue is down 88% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Antilles Gold Limited Been A Good Investment?
We think that the total shareholder return of 61%, over three years, would leave most Antilles Gold Limited shareholders smiling. 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...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for Antilles Gold that investors should be aware of in a dynamic business environment.
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.
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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