What Did Alicanto Minerals' (ASX:AQI) CEO Take Home Last Year?
Peter George has been the CEO of Alicanto Minerals Limited (ASX:AQI) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Alicanto Minerals
How Does Total Compensation For Peter George Compare With Other Companies In The Industry?
Our data indicates that Alicanto Minerals Limited has a market capitalization of AU$31m, and total annual CEO compensation was reported as AU$230k for the year to June 2020. We note that's a decrease of 15% compared to last year. We note that the salary portion, which stands at AU$200.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below AU$261m, reported a median total CEO compensation of AU$306k. So it looks like Alicanto Minerals compensates Peter George in line with the median for the industry. What's more, Peter George holds AU$845k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2020 | 2019 | Proportion (2020) |
Salary | AU$200k | AU$204k | 87% |
Other | AU$30k | AU$68k | 13% |
Total Compensation | AU$230k | AU$272k | 100% |
Talking in terms of the industry, salary represented approximately 69% of total compensation out of all the companies we analyzed, while other remuneration made up 31% of the pie. Alicanto Minerals is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Alicanto Minerals Limited's Growth
Alicanto Minerals Limited has seen its earnings per share (EPS) increase by 11% a year over the past three years. Its revenue is down 48% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Alicanto Minerals Limited Been A Good Investment?
With a three year total loss of 44% for the shareholders, Alicanto Minerals Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As we touched on above, Alicanto Minerals Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. At the same time, the company has logged negative shareholder returns over the last three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 5 warning signs for Alicanto Minerals (3 are concerning!) that you should be aware of before investing here.
Switching gears from Alicanto Minerals, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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