Here's Why Shareholders Will Not Be Complaining About Antilles Gold Limited's (ASX:AAU) CEO Pay Packet

It would be hard to discount the role that CEO James Tyers has played in delivering the impressive results at Antilles Gold Limited (ASX:AAU) recently. Coming up to the next AGM on 30 July 2021, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Antilles Gold

How Does Total Compensation For James Tyers Compare With Other Companies In The Industry?

At the time of writing, our data shows that Antilles Gold Limited has a market capitalization of AU$18m, and reported total annual CEO compensation of US$269k for the year to December 2020. This means that the compensation hasn't changed much from last year. In particular, the salary of US$251.9k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below AU$271m, reported a median total CEO compensation of US$222k. So it looks like Antilles Gold compensates James Tyers in line with the median for the industry.

Component	2020	2019	Proportion (2020)
Salary	US$252k	US$254k	93%
Other	US$18k	US$18k	7%
Total Compensation	US$269k	US$272k	100%

On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. Antilles Gold pays out 93% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Antilles Gold Limited's Growth

Over the past three years, Antilles Gold Limited has seen its earnings per share (EPS) grow by 91% per year. In the last year, its revenue is down 88%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Antilles Gold Limited Been A Good Investment?

Most shareholders would probably be pleased with Antilles Gold Limited for providing a total return of 61% over three years. 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.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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. That's why we did some digging and identified 3 warning signs for Antilles Gold that investors should think about before committing capital to this stock.

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

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