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We Think Some Shareholders May Hesitate To Increase Silver Lake Resources Limited's (ASX:SLR) CEO Compensation

Performance at Silver Lake Resources Limited (ASX:SLR) has been reasonably good and CEO Luke Tonkin has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 25 November 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Silver Lake Resources

How Does Total Compensation For Luke Tonkin Compare With Other Companies In The Industry?

At the time of writing, our data shows that Silver Lake Resources Limited has a market capitalization of AU$1.1b, and reported total annual CEO compensation of AU$2.1m for the year to June 2022. That's just a smallish increase of 6.6% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$846k.

For comparison, other companies in the same industry with market capitalizations ranging between AU$601m and AU$2.4b had a median total CEO compensation of AU$1.5m. Accordingly, our analysis reveals that Silver Lake Resources Limited pays Luke Tonkin north of the industry median. Furthermore, Luke Tonkin directly owns AU$1.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2022

2021

Proportion (2022)

Salary

AU$846k

AU$815k

41%

Other

AU$1.2m

AU$1.1m

59%

Total Compensation

AU$2.1m

AU$1.9m

100%

Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. In Silver Lake Resources' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

A Look at Silver Lake Resources Limited's Growth Numbers

Silver Lake Resources Limited has seen its earnings per share (EPS) increase by 95% a year over the past three years. In the last year, its revenue is up 6.1%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Silver Lake Resources Limited Been A Good Investment?

Silver Lake Resources Limited has served shareholders reasonably well, with a total return of 17% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Silver Lake Resources that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.

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