Vance Stazzonelli became the CEO of XRF Scientific Limited (ASX:XRF) in 2012, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether XRF Scientific pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for XRF Scientific
Comparing XRF Scientific Limited's CEO Compensation With the industry
At the time of writing, our data shows that XRF Scientific Limited has a market capitalization of AU$39m, and reported total annual CEO compensation of AU$337k for the year to June 2020. This means that the compensation hasn't changed much from last year. In particular, the salary of AU$270.6k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below AU$258m, we found that the median total CEO compensation was AU$348k. From this we gather that Vance Stazzonelli is paid around the median for CEOs in the industry. What's more, Vance Stazzonelli holds AU$168k worth of shares in the company in their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$271k | AU$270k | 80% |
| Other | AU$67k | AU$66k | 20% |
| Total Compensation | AU$337k | AU$336k | 100% |
Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. There isn't a significant difference between XRF Scientific and the broader market, in terms of salary allocation in the overall compensation package. 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 XRF Scientific Limited's Growth Numbers
XRF Scientific Limited has seen its earnings per share (EPS) increase by 58% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 XRF Scientific Limited Been A Good Investment?
We think that the total shareholder return of 60%, over three years, would leave most XRF Scientific Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
As we touched on above, XRF Scientific Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. The company is growing EPS and total shareholder returns have been pleasing. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for XRF Scientific that investors should look into moving forward.
Switching gears from XRF Scientific, 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.
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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. 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.
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About ASX:XRF
XRF Scientific
Manufactures and markets precious metal products, specialized chemicals, and instruments for the scientific, analytical, construction material, and mining industries in Australia, Canada, and Europe.
Flawless balance sheet with proven track record.
