Yahoo Finance It's Unlikely That Magontec Limited's (ASX:MGL) CEO Will See A Huge Pay Rise This Year
Key Insights
Magontec to hold its Annual General Meeting on 15th of May
Total pay for CEO Nick Andrews includes AU$531.5k salary
The overall pay is 81% above the industry average
Over the past three years, Magontec's EPS grew by 24% and over the past three years, the total shareholder return was 3.5%
Under the guidance of CEO Nick Andrews, Magontec Limited (ASX:MGL) has performed reasonably well 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 15th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for Magontec
How Does Total Compensation For Nick Andrews Compare With Other Companies In The Industry?
At the time of writing, our data shows that Magontec Limited has a market capitalization of AU$25m, and reported total annual CEO compensation of AU$700k for the year to December 2023. That's a notable decrease of 8.9% on last year. We note that the salary portion, which stands at AU$531.5k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the Australian Metals and Mining industry with market capitalizations under AU$304m, the reported median total CEO compensation was AU$387k. This suggests that Nick Andrews is paid more than the median for the industry. Furthermore, Nick Andrews directly owns AU$576k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$532k | AU$513k | 76% |
Other | AU$168k | AU$255k | 24% |
Total Compensation | AU$700k | AU$768k | 100% |
Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. Magontec is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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 Magontec Limited's Growth Numbers
Magontec Limited has seen its earnings per share (EPS) increase by 24% a year over the past three years. Its revenue is down 35% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Magontec Limited Been A Good Investment?
Magontec Limited has generated a total shareholder return of 3.5% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
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. 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 Magontec that investors should think about before committing capital to this stock.
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.
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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.
