Why We Think Alkane Resources Ltd's (ASX:ALK) CEO Compensation Is Not Excessive At All
Key Insights
- Alkane Resources will host its Annual General Meeting on 26th of November
- CEO Nic Earner's total compensation includes salary of AU$639.6k
- The total compensation is similar to the average for the industry
- Alkane Resources' total shareholder return over the past three years was 50% while its EPS was down 48% over the past three years
Performance at Alkane Resources Ltd (ASX:ALK) has been reasonably good and CEO Nic Earner has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 26th of November. We present our case of why we think CEO compensation looks fair.
View our latest analysis for Alkane Resources
How Does Total Compensation For Nic Earner Compare With Other Companies In The Industry?
At the time of writing, our data shows that Alkane Resources Ltd has a market capitalization of AU$1.3b, and reported total annual CEO compensation of AU$1.3m for the year to June 2025. That's a notable increase of 17% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$640k.
On comparing similar companies from the Australian Metals and Mining industry with market caps ranging from AU$615m to AU$2.5b, we found that the median CEO total compensation was AU$1.4m. From this we gather that Nic Earner is paid around the median for CEOs in the industry. Furthermore, Nic Earner directly owns AU$5.7m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | AU$640k | AU$623k | 48% |
| Other | AU$699k | AU$520k | 52% |
| Total Compensation | AU$1.3m | AU$1.1m | 100% |
On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. Alkane Resources pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Alkane Resources Ltd's Growth Numbers
Over the last three years, Alkane Resources Ltd has shrunk its earnings per share by 48% per year. It achieved revenue growth of 82% over the last year.
Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Alkane Resources Ltd Been A Good Investment?
Most shareholders would probably be pleased with Alkane Resources Ltd for providing a total return of 50% 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...
Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 1 which shouldn't be ignored) in Alkane Resources we think you should know about.
Switching gears from Alkane Resources, 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.
Valuation is complex, but we're here to simplify it.
Discover if Alkane Resources might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.