Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Raleigh Finlayson became the CEO of Saracen Mineral Holdings Limited (ASX:SAR) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.

See our latest analysis for Saracen Mineral Holdings

How Does Raleigh Finlayson's Compensation Compare With Similar Sized Companies?

According to our data, Saracen Mineral Holdings Limited has a market capitalization of AU$3.2b, and pays its CEO total annual compensation worth AU$1.9m. (This figure is for the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$716k. We examined companies with market caps from AU$1.4b to AU$4.6b, and discovered that the median CEO total compensation of that group was AU$2.4m.

So Raleigh Finlayson receives a similar amount to the median CEO pay, amongst 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 Saracen Mineral Holdings, below.

Is Saracen Mineral Holdings Limited Growing?

Saracen Mineral Holdings Limited has increased its earnings per share (EPS) by an average of 48% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 14%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.

Has Saracen Mineral Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 163% over three years, Saracen Mineral Holdings 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...

Raleigh Finlayson 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. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Saracen Mineral Holdings shares with their own money (free access).

Important note: Saracen Mineral Holdings 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.

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.

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. Thank you for reading.