In 2014 Amanda Lacaze was appointed CEO of Lynas Corporation Limited (ASX:LYC). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Amanda Lacaze’s Compensation Compare With Similar Sized Companies?
Our data indicates that Lynas Corporation Limited is worth AU$1.2b, and total annual CEO compensation is AU$4m. That’s a notable increase of 50% on last year. We examined companies with market caps from AU$565m to AU$2.3b, and discovered that the median CEO compensation of that group was AU$2m.
Thus we can conclude that Amanda Lacaze receives more in total compensation than the median of a group of companies in the same market, and of similar size to Lynas Corporation Limited. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Lynas has changed from year to year.
Is Lynas Corporation Limited Growing?
On average over the last three years, Lynas Corporation Limited has grown earnings per share (EPS) by 114% each year. Its revenue is up 46% over last year.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Lynas Corporation Limited Been A Good Investment?
Most shareholders would probably be pleased with Lynas Corporation Limited for providing a total return of 222% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at Lynas Corporation Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Lynas Corporation Limited (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.