Stuart Tonkin became the CEO of Northern Star Resources Limited (ASX:NST) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Northern Star Resources

How Does Stuart Tonkin's Compensation Compare With Similar Sized Companies?

According to our data, Northern Star Resources Limited has a market capitalization of AU$9.4b, and paid its CEO total annual compensation worth AU$1.6m over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$590k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from AU$5.8b to AU$18b, and the median CEO total compensation was AU$4.1m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at Northern Star Resources has changed from year to year.

Is Northern Star Resources Limited Growing?

Earnings per share at Northern Star Resources Limited are much the same as they were three years ago, albeit slightly lower, based on the trend. It achieved revenue growth of 45% over the last year.

Investors should note that, over three years, earnings per share are down. 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. You might want to check this free visual report on analyst forecasts for future earnings.

Has Northern Star Resources Limited Been A Good Investment?

Boasting a total shareholder return of 238% over three years, Northern Star Resources Limited has done well by shareholders. 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.

In Summary...

It appears that Northern Star Resources Limited remunerates its CEO below most similar sized companies.

Stuart Tonkin is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. Shareholders may want to check for free if Northern Star Resources insiders are buying or selling shares.

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.

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.