Yahoo Finance Should You Worry About Greenland Minerals Limited's (ASX:GGG) CEO Pay Cheque?
John Mair has been the CEO of Greenland Minerals Limited (ASX:GGG) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Greenland Minerals
How Does John Mair's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Greenland Minerals Limited has a market cap of AU$85m, and is paying total annual CEO compensation of AU$613k. (This number is for the twelve months until December 2018). Notably, that's an increase of 8.2% over the year before. While we always look at total compensation first, we note that the salary component is less, at AU$350k. We examined a group of similar sized companies, with market capitalizations of below AU$278m. The median CEO total compensation in that group is AU$355k.
It would therefore appear that Greenland Minerals Limited pays John Mair 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Greenland Minerals has changed from year to year.
Is Greenland Minerals Limited Growing?
Over the last three years Greenland Minerals Limited has grown its earnings per share (EPS) by an average of 25% per year (using a line of best fit). In the last year, its revenue is up 4.7%.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Greenland Minerals Limited Been A Good Investment?
Boasting a total shareholder return of 114% over three years, Greenland Minerals 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 examined the amount Greenland Minerals Limited pays its CEO, and compared it to the amount paid by 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. 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 Greenland Minerals (free visualization of insider trades).
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.
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.
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. Thank you for reading.
