AKORA Resources Limited's (ASX:AKO) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• AKORA Resources will host its Annual General Meeting on 30th of May
• Salary of AU$250.0k is part of CEO Paul Bibby's total remuneration
• The overall pay is comparable to the industry average
• AKORA Resources' EPS grew by 21% over the past three years while total shareholder loss over the past three years was 38%

The underwhelming share price performance of AKORA Resources Limited (ASX:AKO) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 30th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for AKORA Resources

Comparing AKORA Resources Limited's CEO Compensation With The Industry

Our data indicates that AKORA Resources Limited has a market capitalization of AU$19m, and total annual CEO compensation was reported as AU$418k for the year to December 2023. We note that's an increase of 15% above last year. In particular, the salary of AU$250.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Australian Metals and Mining industry with market capitalizations below AU$301m, reported a median total CEO compensation of AU$389k. This suggests that AKORA Resources remunerates its CEO largely in line with the industry average. Moreover, Paul Bibby also holds AU$398k worth of AKORA Resources stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	AU$250k	AU$250k	60%
Other	AU$168k	AU$115k	40%
Total Compensation	AU$418k	AU$365k	100%

On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. There isn't a significant difference between AKORA Resources and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at AKORA Resources Limited's Growth Numbers

AKORA Resources Limited has seen its earnings per share (EPS) increase by 21% a year over the past three years. Its revenue is up 7,038% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 AKORA Resources Limited Been A Good Investment?

The return of -38% over three years would not have pleased AKORA Resources Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 3 which are a bit unpleasant) in AKORA Resources we think you should know about.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.