Should You Worry About Jubilee Metals Group PLC's (LON:JLP) CEO Pay Cheque?
In 2010 Leon Coetzer was appointed CEO of Jubilee Metals Group PLC (LON:JLP). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Jubilee Metals Group
How Does Leon Coetzer's Compensation Compare With Similar Sized Companies?
Our data indicates that Jubilee Metals Group PLC is worth UK£54m, and total annual CEO compensation is UK£228k. (This number is for the twelve months until June 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth UK£228k. We took a group of companies with market capitalizations below UK£161m, and calculated the median CEO total compensation to be UK£255k.
So Leon Coetzer is paid around the average of the companies we looked at. 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 Jubilee Metals Group, below.
Is Jubilee Metals Group PLC Growing?
Jubilee Metals Group PLC has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 50%.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Jubilee Metals Group PLC Been A Good Investment?
Given the total loss of 17% over three years, many shareholders in Jubilee Metals Group PLC are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Leon Coetzer is paid around what is normal the leaders of comparable size companies.
We'd say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. So you may want to check if insiders are buying Jubilee Metals Group shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. Thank you for reading.
