We Think Perseus Mining Limited's (ASX:PRU) CEO Compensation Looks Fair
Key Insights
Perseus Mining will host its Annual General Meeting on 21st of November
Salary of AU$954.3k is part of CEO Jeff Quartermaine's total remuneration
The total compensation is similar to the average for the industry
Over the past three years, Perseus Mining's EPS grew by 57% and over the past three years, the total shareholder return was 48%
We have been pretty impressed with the performance at Perseus Mining Limited (ASX:PRU) recently and CEO Jeff Quartermaine deserves a mention for their role in it. Coming up to the next AGM on 21st of November, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
See our latest analysis for Perseus Mining
How Does Total Compensation For Jeff Quartermaine Compare With Other Companies In The Industry?
According to our data, Perseus Mining Limited has a market capitalization of AU$2.4b, and paid its CEO total annual compensation worth AU$2.4m over the year to June 2023. Notably, that's an increase of 22% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$954k.
In comparison with other companies in the Australian Metals and Mining industry with market capitalizations ranging from AU$1.6b to AU$5.0b, the reported median CEO total compensation was AU$2.0m. From this we gather that Jeff Quartermaine is paid around the median for CEOs in the industry. Moreover, Jeff Quartermaine also holds AU$7.9m worth of Perseus Mining stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$954k | AU$721k | 39% |
Other | AU$1.5m | AU$1.3m | 61% |
Total Compensation | AU$2.4m | AU$2.0m | 100% |
Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. Perseus Mining sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Perseus Mining Limited's Growth Numbers
Over the past three years, Perseus Mining Limited has seen its earnings per share (EPS) grow by 57% per year. In the last year, its revenue is up 27%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Perseus Mining Limited Been A Good Investment?
Most shareholders would probably be pleased with Perseus Mining Limited for providing a total return of 48% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Perseus Mining that you should be aware of before investing.
Important note: Perseus Mining 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.
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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.
