Increases to Tesoro Gold Ltd's (ASX:TSO) CEO Compensation Might Cool off for now
CEO Zeff Reeves has done a decent job of delivering relatively good performance at Tesoro Gold Ltd (ASX:TSO) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 22 February 2023. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for Tesoro Gold
Comparing Tesoro Gold Ltd's CEO Compensation With The Industry
Our data indicates that Tesoro Gold Ltd has a market capitalization of AU$33m, and total annual CEO compensation was reported as AU$942k for the year to June 2022. Notably, that's a decrease of 38% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$240k.
On comparing similar-sized companies in the Australian Metals and Mining industry with market capitalizations below AU$290m, we found that the median total CEO compensation was AU$353k. Hence, we can conclude that Zeff Reeves is remunerated higher than the industry median. Moreover, Zeff Reeves also holds AU$2.0m worth of Tesoro Gold stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | AU$240k | AU$240k | 25% |
Other | AU$702k | AU$1.3m | 75% |
Total Compensation | AU$942k | AU$1.5m | 100% |
On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. In Tesoro Gold's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Tesoro Gold Ltd's Growth
Tesoro Gold Ltd has seen its earnings per share (EPS) increase by 8.8% a year over the past three years. Its revenue is down 64% over the previous year.
We would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Tesoro Gold Ltd Been A Good Investment?
With a total shareholder return of 14% over three years, Tesoro Gold Ltd shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 4 which are concerning) in Tesoro Gold we think you should know about.
Important note: Tesoro Gold is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
