Is Chase Mining Corporation Limited's (ASX:CML) CEO Paid Enough Relative To Peers?

The CEO of Chase Mining Corporation Limited (ASX:CML) is Leon Pretorius. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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 Chase Mining

How Does Leon Pretorius's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Chase Mining Corporation Limited has a market cap of AU$4.1m, and reported total annual CEO compensation of AU$280k for the year to June 2019. Notably, that's an increase of 15% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$219k. We looked at a group of companies with market capitalizations under AU$291m, and the median CEO total compensation was AU$380k.

So Leon Pretorius is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Chase Mining, below.

ASX:CML CEO Compensation, December 16th 2019
ASX:CML CEO Compensation, December 16th 2019

Is Chase Mining Corporation Limited Growing?

Over the last three years Chase Mining Corporation Limited has shrunk its earnings per share by an average of 32% per year (measured with a line of best fit). It achieved revenue growth of 174% over the last year.

The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Chase Mining Corporation Limited Been A Good Investment?

With a three year total loss of 35%, Chase Mining Corporation Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Leon Pretorius is paid around what is normal the leaders of comparable size companies.

The company cannot boast particularly strong per share growth. And it's hard to argue that the returns over the last three years have delighted. This contrasts with the growth in CEO remuneration. So suffice it to say we don't think the compensation is modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Chase Mining.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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