It Looks Like The CEO Of Emerald Resources NL (ASX:EMR) May Be Underpaid Compared To Peers
Key Insights
Emerald Resources to hold its Annual General Meeting on 29th of November
Total pay for CEO Morgan Hart includes AU$527.2k salary
The total compensation is 55% less than the average for the industry
Emerald Resources' total shareholder return over the past three years was 336% while its EPS grew by 110% over the past three years
The impressive results at Emerald Resources NL (ASX:EMR) recently will be great news for shareholders. At the upcoming AGM on 29th of November, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.
Check out our latest analysis for Emerald Resources
How Does Total Compensation For Morgan Hart Compare With Other Companies In The Industry?
Our data indicates that Emerald Resources NL has a market capitalization of AU$1.6b, and total annual CEO compensation was reported as AU$662k for the year to June 2023. Notably, that's an increase of 14% over the year before. Notably, the salary which is AU$527.2k, represents most of the total compensation being paid.
On examining similar-sized companies in the Australian Metals and Mining industry with market capitalizations between AU$609m and AU$2.4b, we discovered that the median CEO total compensation of that group was AU$1.5m. Accordingly, Emerald Resources pays its CEO under the industry median. What's more, Morgan Hart holds AU$100m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$527k | AU$471k | 80% |
Other | AU$134k | AU$109k | 20% |
Total Compensation | AU$662k | AU$581k | 100% |
On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. According to our research, Emerald Resources has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Emerald Resources NL's Growth
Emerald Resources NL's earnings per share (EPS) grew 110% per year over the last three years. In the last year, its revenue is up 45%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Emerald Resources NL Been A Good Investment?
We think that the total shareholder return of 336%, over three years, would leave most Emerald Resources NL shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Emerald Resources that investors should be aware of in a dynamic business environment.
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.
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.
