We Discuss Why Jubilee Metals Group PLC's (LON:JLP) CEO Compensation May Be Closely Reviewed
Key Insights
Jubilee Metals Group to hold its Annual General Meeting on 3rd of January
Salary of UK£447.4k is part of CEO Leon Coetzer's total remuneration
The overall pay is 43% above the industry average
Jubilee Metals Group's three-year loss to shareholders was 52% while its EPS was down 23% over the past three years
The results at Jubilee Metals Group PLC (LON:JLP) have been quite disappointing recently and CEO Leon Coetzer bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 3rd of January. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.
Check out our latest analysis for Jubilee Metals Group
How Does Total Compensation For Leon Coetzer Compare With Other Companies In The Industry?
At the time of writing, our data shows that Jubilee Metals Group PLC has a market capitalization of UK£190m, and reported total annual CEO compensation of UK£688k for the year to June 2023. That's just a smallish increase of 6.1% on last year. We note that the salary portion, which stands at UK£447.4k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the British Metals and Mining industry with market capitalizations ranging from UK£78m to UK£313m, the reported median CEO total compensation was UK£481k. This suggests that Leon Coetzer is paid more than the median for the industry. What's more, Leon Coetzer holds UK£51k worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | UK£447k | UK£259k | 65% |
Other | UK£240k | UK£389k | 35% |
Total Compensation | UK£688k | UK£648k | 100% |
On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. There isn't a significant difference between Jubilee Metals Group and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Jubilee Metals Group PLC's Growth Numbers
Jubilee Metals Group PLC has reduced its earnings per share by 23% a year over the last three years. In the last year, its revenue is up 1.4%.
The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Jubilee Metals Group PLC Been A Good Investment?
With a total shareholder return of -52% over three years, Jubilee Metals Group PLC shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Jubilee Metals Group that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
