Should You Worry About Argosy Minerals Limited’s (ASX:AGY) CEO Pay?

In 2016 Jerko Zuvela was appointed CEO of Argosy Minerals Limited (ASX:AGY). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Argosy Minerals

How Does Jerko Zuvela’s Compensation Compare With Similar Sized Companies?

According to our data, Argosy Minerals Limited has a market capitalization of AU$74m, and paid its CEO total annual compensation worth AU$274k over the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$274k. We looked at a group of companies with market capitalizations under AU$292m, and the median CEO total compensation was AU$373k.

So Jerko Zuvela 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 a visual representation of the CEO compensation at Argosy Minerals, below.

ASX:AGY CEO Compensation, December 8th 2019
ASX:AGY CEO Compensation, December 8th 2019

Is Argosy Minerals Limited Growing?

On average over the last three years, Argosy Minerals Limited has shrunk earnings per share by 24% each year (measured with a line of best fit). In the last year, its revenue is up 235%.

Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Argosy Minerals Limited Been A Good Investment?

Boasting a total shareholder return of 172% over three years, Argosy Minerals Limited has done well by shareholders. 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…

Jerko Zuvela is paid around the same as most CEOs of similar size companies.

While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Argosy Minerals.

Important note: Argosy Minerals may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.

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. Thank you for reading.