The CEO of Bryah Resources Limited (ASX:BYH) is Neil Marston, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Bryah Resources pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Neil Marston Compare With Other Companies In The Industry?
At the time of writing, our data shows that Bryah Resources Limited has a market capitalization of AU$8.6m, and reported total annual CEO compensation of AU$241k for the year to June 2020. Notably, that's a decrease of 8.3% over the year before. In particular, the salary of AU$220.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under AU$277m, the reported median total CEO compensation was AU$310k. This suggests that Bryah Resources remunerates its CEO largely in line with the industry average. Furthermore, Neil Marston directly owns AU$397k worth of shares in the company.
Talking in terms of the industry, salary represented approximately 70% of total compensation out of all the companies we analyzed, while other remuneration made up 30% of the pie. According to our research, Bryah Resources has allocated a higher percentage of pay to salary in comparison to the wider 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.
A Look at Bryah Resources Limited's Growth Numbers
Over the past three years, Bryah Resources Limited has seen its earnings per share (EPS) grow by 27% per year. It saw its revenue drop 68% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Bryah Resources Limited Been A Good Investment?
Given the total shareholder loss of 73% over three years, many shareholders in Bryah Resources Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we touched on above, Bryah Resources 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. On the other hand, the company has logged negative shareholder returns over the previous three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Overall, we wouldn't say Neil is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 5 warning signs for Bryah Resources you should be aware of, and 4 of them are a bit concerning.
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.
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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