Yahoo Finance How Much is Boab Metals' (ASX:BML) CEO Getting Paid?
This article will reflect on the compensation paid to Simon Noon who has served as CEO of Boab Metals Limited (ASX:BML) since 2013. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Boab Metals
How Does Total Compensation For Simon Noon Compare With Other Companies In The Industry?
At the time of writing, our data shows that Boab Metals Limited has a market capitalization of AU$75m, and reported total annual CEO compensation of AU$362k for the year to June 2020. We note that's an increase of 25% above last year. Notably, the salary which is AU$240.0k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below AU$259m, reported a median total CEO compensation of AU$308k. From this we gather that Simon Noon is paid around the median for CEOs in the industry. Furthermore, Simon Noon directly owns AU$890k worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | AU$240k | AU$210k | 66% |
Other | AU$122k | AU$79k | 34% |
Total Compensation | AU$362k | AU$288k | 100% |
Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. There isn't a significant difference between Boab Metals and the broader market, in terms of salary allocation in the overall compensation package. 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 Boab Metals Limited's Growth Numbers
Boab Metals Limited's earnings per share (EPS) grew 17% per year over the last three years. In the last year, its revenue is up 176%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Boab Metals Limited Been A Good Investment?
Most shareholders would probably be pleased with Boab Metals Limited for providing a total return of 145% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
As we noted earlier, Boab Metals pays its CEO in line with similar-sized companies belonging to the same industry. The company is growing EPS and total shareholder returns have been pleasing. Indeed, many might consider that Simon is compensated rather modestly, given the solid company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for Boab Metals you should be aware of, and 1 of them is a bit concerning.
Important note: Boab Metals is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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. 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.
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