Why Silver Lake Resources Limited’s (ASX:SLR) CEO Salary Matters To You
Luke Tonkin has been the CEO of Silver Lake Resources Limited (ASX:SLR) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Silver Lake Resources
How Does Luke Tonkin’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Silver Lake Resources Limited has a market cap of AU$272m, and is paying total annual CEO compensation of AU$1m. That’s a notable increase of 15% on last year. We examined companies with market caps from AU$139m to AU$556m, and discovered that the median CEO compensation of that group was AU$767k.
It would therefore appear that Silver Lake Resources Limited pays Luke Tonkin more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Silver Lake Resources has changed over time.
Is Silver Lake Resources Limited Growing?
On average over the last three years, Silver Lake Resources Limited has grown earnings per share (EPS) by 122% each year. Its revenue is up 12% over last year.
This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Silver Lake Resources Limited Been A Good Investment?
Most shareholders would probably be pleased with Silver Lake Resources Limited for providing a total return of 154% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared the total CEO remuneration paid by Silver Lake Resources Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Silver Lake Resources Limited (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.