Why We Think Sylvania Platinum Limited's (LON:SLP) CEO Compensation Is Not Excessive At All
Key Insights
Sylvania Platinum to hold its Annual General Meeting on 24th of November
CEO Jaco Prinsloo's total compensation includes salary of US$295.3k
The total compensation is similar to the average for the industry
Over the past three years, Sylvania Platinum's EPS grew by 5.7% and over the past three years, the total shareholder return was 19%
Under the guidance of CEO Jaco Prinsloo, Sylvania Platinum Limited (LON:SLP) has performed reasonably well recently. As shareholders go into the upcoming AGM on 24th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.
View our latest analysis for Sylvania Platinum
Comparing Sylvania Platinum Limited's CEO Compensation With The Industry
Our data indicates that Sylvania Platinum Limited has a market capitalization of UK£185m, and total annual CEO compensation was reported as US$480k for the year to June 2023. That's a notable decrease of 10% on last year. Notably, the salary which is US$295.3k, represents most of the total compensation being paid.
On examining similar-sized companies in the British Metals and Mining industry with market capitalizations between UK£80m and UK£322m, we discovered that the median CEO total compensation of that group was US$640k. So it looks like Sylvania Platinum compensates Jaco Prinsloo in line with the median for the industry. Moreover, Jaco Prinsloo also holds UK£1.0m worth of Sylvania Platinum 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 | US$295k | US$319k | 62% |
Other | US$185k | US$216k | 38% |
Total Compensation | US$480k | US$535k | 100% |
On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. Sylvania Platinum is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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 Sylvania Platinum Limited's Growth Numbers
Sylvania Platinum Limited has seen its earnings per share (EPS) increase by 5.7% a year over the past three years. It saw its revenue drop 14% over the last year.
We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Sylvania Platinum Limited Been A Good Investment?
Sylvania Platinum Limited has served shareholders reasonably well, with a total return of 19% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which doesn't sit too well with us) in Sylvania Platinum we think you should know about.
Switching gears from Sylvania Platinum, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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.
