VRX Silica Limited's (ASX:VRX) CEO Will Probably Find It Hard To See A Huge Raise This Year
Key Insights
VRX Silica will host its Annual General Meeting on 17th of November
Total pay for CEO Bruce Maluish includes AU$340.0k salary
The total compensation is similar to the average for the industry
Over the past three years, VRX Silica's EPS fell by 31% and over the past three years, the total loss to shareholders 46%
Shareholders of VRX Silica Limited (ASX:VRX) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also lacking, despite revenue growth. The AGM coming up on 17th of November will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.
Check out our latest analysis for VRX Silica
Comparing VRX Silica Limited's CEO Compensation With The Industry
Our data indicates that VRX Silica Limited has a market capitalization of AU$61m, and total annual CEO compensation was reported as AU$434k for the year to June 2023. That's a notable decrease of 26% on last year. In particular, the salary of AU$340.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the Australian Metals and Mining industry with market capitalizations under AU$315m, the reported median total CEO compensation was AU$392k. So it looks like VRX Silica compensates Bruce Maluish in line with the median for the industry. What's more, Bruce Maluish holds AU$1.5m 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$340k | AU$323k | 78% |
Other | AU$94k | AU$266k | 22% |
Total Compensation | AU$434k | AU$589k | 100% |
On an industry level, around 61% of total compensation represents salary and 39% is other remuneration. It's interesting to note that VRX Silica pays out a greater portion of remuneration through salary, compared to the 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.
A Look at VRX Silica Limited's Growth Numbers
VRX Silica Limited has reduced its earnings per share by 31% a year over the last three years. Its revenue is up 99% over the last year.
The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has VRX Silica Limited Been A Good Investment?
The return of -46% over three years would not have pleased VRX Silica Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.
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. In our study, we found 6 warning signs for VRX Silica you should be aware of, and 3 of them can't be ignored.
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.
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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.
