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Should You Worry About Magnetic Resources NL's (ASX:MAU) CEO Pay?

Simply Wall St

George Sakalidis has been the CEO of Magnetic Resources NL (ASX:MAU) since 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Magnetic Resources

How Does George Sakalidis's Compensation Compare With Similar Sized Companies?

According to our data, Magnetic Resources NL has a market capitalization of AU$91m, and paid its CEO total annual compensation worth AU$343k over the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$217k. We examined a group of similar sized companies, with market capitalizations of below AU$292m. The median CEO total compensation in that group is AU$381k.

That means George Sakalidis 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 Magnetic Resources, below.

ASX:MAU CEO Compensation, January 9th 2020

Is Magnetic Resources NL Growing?

Over the last three years Magnetic Resources NL has shrunk its earnings per share by an average of 13% per year (measured with a line of best fit). It has seen most of its revenue evaporate over the past year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Magnetic Resources NL Been A Good Investment?

Boasting a total shareholder return of 749% over three years, Magnetic Resources NL 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...

Remuneration for George Sakalidis is close enough to the median pay for a CEO of a similar sized company .

We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. Whatever your view on compensation, you might want to check if insiders are buying or selling Magnetic Resources shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.