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It's Unlikely That Great Boulder Resources Limited's (ASX:GBR) CEO Will See A Huge Pay Rise This Year

Key Insights

  • Great Boulder Resources to hold its Annual General Meeting on 21st of November

  • CEO Andrew Paterson's total compensation includes salary of AU$260.0k

  • Total compensation is 158% above industry average

  • Great Boulder Resources' total shareholder return over the past three years was 33% while its EPS grew by 21% over the past three years

CEO Andrew Paterson has done a decent job of delivering relatively good performance at Great Boulder Resources Limited (ASX:GBR) recently. As shareholders go into the upcoming AGM on 21st of November, 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 be hesitant of being overly generous with CEO compensation.

View our latest analysis for Great Boulder Resources

How Does Total Compensation For Andrew Paterson Compare With Other Companies In The Industry?

Our data indicates that Great Boulder Resources Limited has a market capitalization of AU$32m, and total annual CEO compensation was reported as AU$1.0m for the year to June 2023. That's a notable increase of 98% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$260k.

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In comparison with other companies in the Australian Metals and Mining industry with market capitalizations under AU$314m, the reported median total CEO compensation was AU$389k. Accordingly, our analysis reveals that Great Boulder Resources Limited pays Andrew Paterson north of the industry median. Moreover, Andrew Paterson also holds AU$384k worth of Great Boulder Resources stock directly under their own name.

Component

2023

2022

Proportion (2023)

Salary

AU$260k

AU$260k

26%

Other

AU$743k

AU$246k

74%

Total Compensation

AU$1.0m

AU$506k

100%

Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. It's interesting to note that Great Boulder Resources allocates a smaller portion of compensation to salary 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

Great Boulder Resources Limited's Growth

Great Boulder Resources Limited's earnings per share (EPS) grew 21% per year over the last three years. It achieved revenue growth of 1,186% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Great Boulder Resources Limited Been A Good Investment?

With a total shareholder return of 33% over three years, Great Boulder Resources Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 5 warning signs for Great Boulder Resources (3 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.