Does Ioneer Limited's (ASX:INR) CEO Pay Reflect Performance?
Bernard Rowe became the CEO of Ioneer Limited (ASX:INR) in 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Ioneer
How Does Bernard Rowe's Compensation Compare With Similar Sized Companies?
According to our data, Ioneer Limited has a market capitalization of AU$286m, and paid its CEO total annual compensation worth AU$578k over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$362k. When we examined a selection of companies with market caps ranging from AU$152m to AU$610m, we found the median CEO total compensation was AU$772k.
So Bernard Rowe is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Ioneer has changed from year to year.
Is Ioneer Limited Growing?
Over the last three years Ioneer Limited has grown its earnings per share (EPS) by an average of 50% per year (using a line of best fit). In the last year, its revenue is up 183%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Ioneer Limited Been A Good Investment?
Boasting a total shareholder return of 43% over three years, Ioneer 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...
Bernard Rowe is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Ioneer shares with their own money (free access).
Important note: Ioneer may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
