How Much Is Argosy Minerals Limited (ASX:AGY) CEO Getting Paid?

This article will reflect on the compensation paid to Jerko Zuvela who has served as CEO of Argosy Minerals Limited (ASX:AGY) since 2016. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Argosy Minerals

How Does Total Compensation For Jerko Zuvela Compare With Other Companies In The Industry?

According to our data, Argosy Minerals Limited has a market capitalization of AU$63m, and paid its CEO total annual compensation worth AU$274k over the year to December 2019. That is, the compensation was roughly the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth AU$274k.

In comparison with other companies in the industry with market capitalizations under AU$264m, the reported median total CEO compensation was AU$309k. From this we gather that Jerko Zuvela is paid around the median for CEOs in the industry. Furthermore, Jerko Zuvela directly owns AU$4.4m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. Speaking on a company level, Argosy Minerals prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

Argosy Minerals Limited's Growth

Argosy Minerals Limited has seen its earnings per share (EPS) increase by 36% a year over the past three years. In the last year, its revenue is down 9.6%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Argosy Minerals Limited Been A Good Investment?

Given the total shareholder loss of 75% over three years, many shareholders in Argosy Minerals Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

Argosy Minerals rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Argosy Minerals pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, EPS growth is positive over the same time frame. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Argosy Minerals you should be aware of, and 2 of them are a bit unpleasant.

Switching gears from Argosy Minerals, 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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