Yahoo Finance Should You Worry About Rand Mining Limited's (ASX:RND) CEO Pay Cheque?
Anton Billis has been the CEO of Rand Mining Limited (ASX:RND) since 2003. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Rand Mining
How Does Anton Billis's Compensation Compare With Similar Sized Companies?
According to our data, Rand Mining Limited has a market capitalization of AU$141m, and paid its CEO total annual compensation worth AU$184k over the year to June 2019. That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at AU$87k. We took a group of companies with market capitalizations below AU$292m, and calculated the median CEO total compensation to be AU$380k.
Most shareholders would consider it a positive that Anton Billis takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Rand Mining has changed from year to year.
Is Rand Mining Limited Growing?
Over the last three years Rand Mining Limited has grown its earnings per share (EPS) by an average of 66% per year (using a line of best fit). In the last year, its revenue is up 77%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Rand Mining Limited Been A Good Investment?
Boasting a total shareholder return of 119% over three years, Rand Mining Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It appears that Rand Mining Limited remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Anton Billis deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Rand Mining.
If you want to buy a stock that is better than Rand Mining, this free list of high return, low debt companies is a great place to look.
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.
