Yahoo Finance We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Aeris Resources Limited's (ASX:AIS) CEO For Now
CEO Willie Labuschagne has done a decent job of delivering relatively good performance at Aeris Resources Limited (ASX:AIS) recently. 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 23 November 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for Aeris Resources
Comparing Aeris Resources Limited's CEO Compensation With The Industry
At the time of writing, our data shows that Aeris Resources Limited has a market capitalization of AU$335m, and reported total annual CEO compensation of AU$1.3m for the year to June 2022. That's a notable decrease of 17% on last year. Notably, the salary which is AU$714.0k, represents a considerable chunk of the total compensation being paid.
For comparison, other companies in the same industry with market capitalizations ranging between AU$148m and AU$590m had a median total CEO compensation of AU$717k. Accordingly, our analysis reveals that Aeris Resources Limited pays Willie Labuschagne north of the industry median. Moreover, Willie Labuschagne also holds AU$2.6m worth of Aeris Resources stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | AU$714k | AU$700k | 56% |
Other | AU$553k | AU$823k | 44% |
Total Compensation | AU$1.3m | AU$1.5m | 100% |
On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. Our data reveals that Aeris Resources allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Aeris Resources Limited's Growth Numbers
Aeris Resources Limited has seen its earnings per share (EPS) increase by 88% a year over the past three years. In the last year, its revenue is down 10%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Aeris Resources Limited Been A Good Investment?
We think that the total shareholder return of 125%, over three years, would leave most Aeris Resources Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
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 3 warning signs for Aeris Resources (2 are a bit concerning!) 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
