Yahoo Finance Shareholders Will Probably Not Have Any Issues With First Au Limited's (ASX:FAU) CEO Compensation
Key Insights
First Au to hold its Annual General Meeting on 16th of May
CEO Ryan Skeen's total compensation includes salary of AU$187.5k
Total compensation is 41% below industry average
Over the past three years, First Au's EPS grew by 39% and over the past three years, the total loss to shareholders 88%
The performance at First Au Limited (ASX:FAU) has been rather lacklustre of late and shareholders may be wondering what CEO Ryan Skeen is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 16th of May. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.
See our latest analysis for First Au
Comparing First Au Limited's CEO Compensation With The Industry
At the time of writing, our data shows that First Au Limited has a market capitalization of AU$3.3m, and reported total annual CEO compensation of AU$228k for the year to December 2023. We note that's an increase of 15% above last year. In particular, the salary of AU$187.5k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the Australian Metals and Mining industry with market capitalizations below AU$304m, reported a median total CEO compensation of AU$385k. In other words, First Au pays its CEO lower than the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$188k | AU$166k | 82% |
Other | AU$40k | AU$33k | 18% |
Total Compensation | AU$228k | AU$199k | 100% |
On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. It's interesting to note that First Au pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at First Au Limited's Growth Numbers
First Au Limited has seen its earnings per share (EPS) increase by 39% a year over the past three years. In the last year, its revenue is down 14%.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has First Au Limited Been A Good Investment?
The return of -88% over three years would not have pleased First Au Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
The loss to shareholders over the past three years is certainly concerning. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 5 warning signs for First Au that you should be aware of before investing.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
