Here's Why Shareholders Should Examine BBX Minerals Limited's (ASX:BBX) CEO Compensation Package More Closely
Key Insights
BBX Minerals will host its Annual General Meeting on 26th of November
Salary of AU$142.5k is part of CEO Andre Douchane's total remuneration
Total compensation is similar to the industry average
BBX Minerals' three-year loss to shareholders was 92% while its EPS was down 7.9% over the past three years
BBX Minerals Limited (ASX:BBX) has not performed well recently and CEO Andre Douchane will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 26th of November. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.
View our latest analysis for BBX Minerals
How Does Total Compensation For Andre Douchane Compare With Other Companies In The Industry?
According to our data, BBX Minerals Limited has a market capitalization of AU$20m, and paid its CEO total annual compensation worth AU$469k over the year to June 2023. That's a notable decrease of 30% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$143k.
For comparison, other companies in the Australian Metals and Mining industry with market capitalizations below AU$305m, reported a median total CEO compensation of AU$386k. This suggests that BBX Minerals remunerates its CEO largely in line with the industry average. What's more, Andre Douchane holds AU$216k worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$143k | AU$132k | 30% |
Other | AU$326k | AU$541k | 70% |
Total Compensation | AU$469k | AU$673k | 100% |
Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. In BBX Minerals' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at BBX Minerals Limited's Growth Numbers
Over the last three years, BBX Minerals Limited has shrunk its earnings per share by 7.9% per year. It saw its revenue drop 19% over the last year.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has BBX Minerals Limited Been A Good Investment?
Few BBX Minerals Limited shareholders would feel satisfied with the return of -92% over three years. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
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 7 warning signs for BBX Minerals you should be aware of, and 5 of them are a bit concerning.
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.
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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.
