Yahoo Finance Is VRX Silica Limited's (ASX:VRX) CEO Salary Justified?
Bruce Maluish has been the CEO of VRX Silica Limited (ASX:VRX) since 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for VRX Silica
How Does Bruce Maluish's Compensation Compare With Similar Sized Companies?
Our data indicates that VRX Silica Limited is worth AU$40m, and total annual CEO compensation was reported as AU$660k for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$245k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined a group of similar sized companies, with market capitalizations of below AU$296m. The median CEO total compensation in that group is AU$385k.
Thus we can conclude that Bruce Maluish receives more in total compensation than the median of a group of companies in the same market, and of similar size to VRX Silica Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at VRX Silica has changed over time.
Is VRX Silica Limited Growing?
On average over the last three years, VRX Silica Limited has grown earnings per share (EPS) by 80% each year (using a line of best fit). Its revenue is up 28% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has VRX Silica Limited Been A Good Investment?
Boasting a total shareholder return of 367% over three years, VRX Silica Limited has done well by shareholders. 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...
We compared the total CEO remuneration paid by VRX Silica Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying VRX Silica shares with their own money (free access).
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
