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Is Perseus Mining Limited's (ASX:PRU) CEO Paid At A Competitive Rate?

Simply Wall St

Jeff Quartermaine became the CEO of Perseus Mining Limited (ASX:PRU) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Perseus Mining

How Does Jeff Quartermaine's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Perseus Mining Limited has a market cap of AU$1.3b, and reported total annual CEO compensation of AU$1.2m for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$716k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$585m to AU$2.3b. The median total CEO compensation was AU$1.4m.

That means Jeff Quartermaine receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Perseus Mining, below.

ASX:PRU CEO Compensation, January 24th 2020

Is Perseus Mining Limited Growing?

Over the last three years Perseus Mining Limited has grown its earnings per share (EPS) by an average of 71% per year (using a line of best fit). Its revenue is up 35% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.

Has Perseus Mining Limited Been A Good Investment?

Boasting a total shareholder return of 210% over three years, Perseus Mining Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Jeff Quartermaine is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Perseus Mining shares with their own money (free access).

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.