What Can We Learn About Chatham Rock Phosphate's (NZSE:CRP) CEO Compensation?
The CEO of Chatham Rock Phosphate Limited (NZSE:CRP) is Chris Castle, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Chatham Rock Phosphate.
View our latest analysis for Chatham Rock Phosphate
Comparing Chatham Rock Phosphate Limited's CEO Compensation With the industry
Our data indicates that Chatham Rock Phosphate Limited has a market capitalization of NZ$3.5m, and total annual CEO compensation was reported as CA$124k for the year to March 2020. We note that's a decrease of 21% compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$124k.
In comparison with other companies in the industry with market capitalizations under NZ$300m, the reported median total CEO compensation was CA$334k. That is to say, Chris Castle is paid under the industry median.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$124k | CA$129k | 100% |
Other | - | CA$29k | - |
Total Compensation | CA$124k | CA$158k | 100% |
On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. Speaking on a company level, Chatham Rock Phosphate prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Chatham Rock Phosphate Limited's Growth Numbers
Over the past three years, Chatham Rock Phosphate Limited has seen its earnings per share (EPS) grow by 59% per year. In the last year, its revenue is down 5.8%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Chatham Rock Phosphate Limited Been A Good Investment?
Since shareholders would have lost about 76% over three years, some Chatham Rock Phosphate Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Chatham Rock Phosphate rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Chatham Rock Phosphate pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However we must not forget that the EPS growth has been very strong over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 5 warning signs for Chatham Rock Phosphate (of which 3 are a bit concerning!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Chatham Rock Phosphate, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. 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.
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