Yahoo Finance We Think Shareholders Will Probably Be Generous With Azure Minerals Limited's (ASX:AZS) CEO Compensation
It would be hard to discount the role that CEO Tony Rovira has played in delivering the impressive results at Azure Minerals Limited (ASX:AZS) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 23 November 2021. The focus will probably be on the future company strategy as shareholders 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 Azure Minerals
Comparing Azure Minerals Limited's CEO Compensation With the industry
Our data indicates that Azure Minerals Limited has a market capitalization of AU$125m, and total annual CEO compensation was reported as AU$410k for the year to June 2021. That's a notable decrease of 13% on last year. We note that the salary portion, which stands at AU$384.8k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below AU$272m, we found that the median total CEO compensation was AU$350k. This suggests that Azure Minerals remunerates its CEO largely in line with the industry average. Moreover, Tony Rovira also holds AU$610k worth of Azure Minerals stock directly under their own name.
Component | 2021 | 2020 | Proportion (2021) |
Salary | AU$385k | AU$387k | 94% |
Other | AU$25k | AU$83k | 6% |
Total Compensation | AU$410k | AU$470k | 100% |
On an industry level, around 59% of total compensation represents salary and 41% is other remuneration. According to our research, Azure Minerals has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Azure Minerals Limited's Growth
Azure Minerals Limited's earnings per share (EPS) grew 22% per year over the last three years. In the last year, its revenue is down 51%.
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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Azure Minerals Limited Been A Good Investment?
Boasting a total shareholder return of 119% over three years, Azure Minerals Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 5 warning signs (and 2 which are significant) in Azure Minerals we think you should know about.
Switching gears from Azure Minerals, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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