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Ross Brown has been the CEO of Inca Minerals Limited (ASX:ICG) since 2012. 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. 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.
How Does Ross Brown's Compensation Compare With Similar Sized Companies?
According to our data, Inca Minerals Limited has a market capitalization of AU$4.1m, and paid its CEO total annual compensation worth AU$318k over the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$256k. We examined a group of similar sized companies, with market capitalizations of below AU$312m. The median CEO total compensation in that group is AU$392k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. So it seems like there isn't a significant difference between Inca Minerals and the broader market, in terms of salary allocation in the overall compensation package.
So Ross Brown receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. The graphic below shows how CEO compensation at Inca Minerals has changed from year to year.
Is Inca Minerals Limited Growing?
Inca Minerals Limited has seen earnings per share (EPS) move positively by an average of 63% a year, over the last three years (using a line of best fit). It achieved revenue growth of 233% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Inca Minerals Limited Been A Good Investment?
Given the total loss of 93% over three years, many shareholders in Inca Minerals Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Ross Brown is paid around what is normal for the leaders of comparable size companies.
We'd say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Shifting gears from CEO pay for a second, we've spotted 6 warning signs for Inca Minerals you should be aware of, and 3 of them can't be ignored.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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