Yahoo Finance It's Unlikely That Image Resources NL's (ASX:IMA) CEO Will See A Huge Pay Rise This Year
CEO Patrick Mutz has done a decent job of delivering relatively good performance at Image Resources NL (ASX:IMA) recently. As shareholders go into the upcoming AGM on 27 May 2021, 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.
See our latest analysis for Image Resources
Comparing Image Resources NL's CEO Compensation With the industry
Our data indicates that Image Resources NL has a market capitalization of AU$165m, and total annual CEO compensation was reported as AU$622k for the year to December 2020. That's slightly lower by 4.6% over the previous year. In particular, the salary of AU$464.7k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below AU$258m, we found that the median total CEO compensation was AU$305k. Accordingly, our analysis reveals that Image Resources NL pays Patrick Mutz north of the industry median. Moreover, Patrick Mutz also holds AU$603k worth of Image Resources stock directly under their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | AU$465k | AU$426k | 75% |
Other | AU$158k | AU$226k | 25% |
Total Compensation | AU$622k | AU$653k | 100% |
Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. Our data reveals that Image Resources allocates salary more or less in line with the wider market. 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 Image Resources NL's Growth Numbers
Image Resources NL has seen its earnings per share (EPS) increase by 100% a year over the past three years. Its revenue is up 21% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Image Resources NL Been A Good Investment?
Most shareholders would probably be pleased with Image Resources NL for providing a total return of 41% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
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.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Image Resources that investors should think about before committing capital to this stock.
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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