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How Much Is Firefly Resources' (ASX:FFR) CEO Getting Paid?

Simply Wall St
·3 min read

Simon Lawson has been the CEO of Firefly Resources Limited (ASX:FFR) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Firefly Resources.

View our latest analysis for Firefly Resources

Comparing Firefly Resources Limited's CEO Compensation With the industry

According to our data, Firefly Resources Limited has a market capitalization of AU$57m, and paid its CEO total annual compensation worth AU$302k over the year to June 2020. Notably, that's an increase of 44% over the year before. Notably, the salary which is AU$210.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below AU$279m, we found that the median total CEO compensation was AU$308k. So it looks like Firefly Resources compensates Simon Lawson in line with the median for the industry. Moreover, Simon Lawson also holds AU$147k worth of Firefly Resources stock directly under their own name.

Component

2020

2019

Proportion (2020)

Salary

AU$210k

AU$193k

70%

Other

AU$92k

AU$17k

30%

Total Compensation

AU$302k

AU$210k

100%

Talking in terms of the industry, salary represented approximately 70% of total compensation out of all the companies we analyzed, while other remuneration made up 30% of the pie. Firefly Resources is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
ceo-compensation

Firefly Resources Limited's Growth

Firefly Resources Limited has seen its earnings per share (EPS) increase by 16% a year over the past three years. Revenue was pretty flat on last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Firefly Resources Limited Been A Good Investment?

Since shareholders would have lost about 64% over three years, some Firefly Resources Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we touched on above, Firefly Resources Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, the company has logged negative shareholder returns over the previous three years. But on the bright side, EPS growth is positive over the same period. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 5 warning signs (and 3 which shouldn't be ignored) in Firefly Resources we think you should know about.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.