Does Dart Mining NL’s (ASX:DTM) CEO Pay Compare Well With Peers?
James Chirnside became the CEO of Dart Mining NL (ASX:DTM) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Dart Mining
How Does James Chirnside’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Dart Mining NL has a market cap of AU$5.6m, and is paying total annual CEO compensation of AU$197k. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$180k. We examined a group of similar sized companies, with market capitalizations of below AU$279m. The median CEO compensation in that group is AU$362k.
Most shareholders would consider it a positive that James Chirnside takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Dart Mining has changed from year to year.
Is Dart Mining NL Growing?
Over the last three years Dart Mining NL has grown its earnings per share (EPS) by an average of 46% per year (using a line of best fit). In the last year, its revenue is down -83%.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Dart Mining NL Been A Good Investment?
Given the total loss of 31% over three years, many shareholders in Dart Mining NL are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
It appears that Dart Mining NL remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. So while we would not say that James Chirnside is generously paid, it would be good to see an improvement in business performance before too an increase in pay.
In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. So you may want to check if insiders are buying Dart Mining shares with their own money (free access).
If you want to buy a stock that is better than Dart Mining, this free list of high return, low debt companies is a great place to look.
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.
