In 2013 Jeff Quartermaine was appointed CEO of Perseus Mining Limited (ASX:PRU). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jeff Quartermaine’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Perseus Mining Limited has a market cap of AU$1.0b, and reported total annual CEO compensation of AU$1.2m for the year to June 2019. We note that’s an increase of 13% above last year. We think total compensation is more important but we note that the CEO salary is lower, at AU$716k. When we examined a selection of companies with market caps ranging from AU$586m to AU$2.3b, we found the median CEO total compensation was AU$1.5m.
So Jeff Quartermaine receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Perseus Mining has changed over time.
Is Perseus Mining Limited Growing?
Over the last three years Perseus Mining Limited has grown its earnings per share (EPS) by an average of 71% per year (using a line of best fit). Its revenue is up 35% over last year.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Perseus Mining Limited Been A Good Investment?
I think that the total shareholder return of 53%, over three years, would leave most Perseus Mining Limited shareholders smiling. 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.
Jeff Quartermaine is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Perseus Mining (free visualization of insider trades).
If you want to buy a stock that is better than Perseus Mining, this free list of high return, low debt companies is a great place to look.
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