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Is Argosy Minerals Limited's (ASX:AGY) CEO Paid Enough Relative To Peers?

Simply Wall St

Jerko Zuvela has been the CEO of Argosy Minerals Limited (ASX:AGY) since 2016. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Argosy Minerals

How Does Jerko Zuvela's Compensation Compare With Similar Sized Companies?

According to our data, Argosy Minerals Limited has a market capitalization of AU$51m, and paid its CEO total annual compensation worth AU$274k over the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$274k. We examined a group of similar sized companies, with market capitalizations of below AU$302m. The median CEO total compensation in that group is AU$389k.

So Jerko Zuvela is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Argosy Minerals has changed over time.

ASX:AGY CEO Compensation, March 10th 2020

Is Argosy Minerals Limited Growing?

Over the last three years Argosy Minerals Limited has shrunk its earnings per share by an average of 24% per year (measured with a line of best fit). In the last year, its revenue is up 235%.

The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Argosy Minerals Limited Been A Good Investment?

Most shareholders would probably be pleased with Argosy Minerals Limited for providing a total return of 77% over three years. 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...

Jerko Zuvela is paid around what is normal for the leaders of comparable size companies.

While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. Taking a breather from CEO compensation, we've spotted 6 warning signs for Argosy Minerals (of which 2 can't be ignored!) you should know about in order to have a holistic understanding of the stock.

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.