Is Antipa Minerals Limited's (ASX:AZY) CEO Pay Justified?

In 2011 Roger Mason was appointed CEO of Antipa Minerals Limited (ASX:AZY). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Antipa Minerals

How Does Roger Mason's Compensation Compare With Similar Sized Companies?

Our data indicates that Antipa Minerals Limited is worth AU$35m, and total annual CEO compensation is AU$395k. (This is based on the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$300k. We took a group of companies with market capitalizations below AU$295m, and calculated the median CEO total compensation to be AU$355k.

That means Roger Mason receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Antipa Minerals, below.

Is Antipa Minerals Limited Growing?

On average over the last three years, Antipa Minerals Limited has grown earnings per share (EPS) by 26% each year (using a line of best fit). Its revenue is down -42% over last year.

This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end.

Has Antipa Minerals Limited Been A Good Investment?

Given the total loss of 60% over three years, many shareholders in Antipa Minerals Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Roger Mason is paid around what is normal the leaders of comparable size companies.

We like that the company is growing EPS, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Shareholders may want to check for free if Antipa Minerals insiders are buying or selling shares.

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.

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.

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.