Shareholders Will Likely Find Advance ZincTek Limited's (ASX:ANO) CEO Compensation Acceptable

Key Insights

• Advance ZincTek to hold its Annual General Meeting on 14th of November
• Salary of AU$292.3k is part of CEO Geoff Acton's total remuneration
• Total compensation is 32% below industry average
• Advance ZincTek's EPS declined by 18% over the past three years while total shareholder loss over the past three years was 45%

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The performance at Advance ZincTek Limited (ASX:ANO) has been rather lacklustre of late and shareholders may be wondering what CEO Geoff Acton is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 14th of November. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for Advance ZincTek

Comparing Advance ZincTek Limited's CEO Compensation With The Industry

Our data indicates that Advance ZincTek Limited has a market capitalization of AU$78m, and total annual CEO compensation was reported as AU$300k for the year to June 2025. That's a fairly small increase of 3.7% over the previous year. We note that the salary portion, which stands at AU$292.3k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Australian Chemicals industry with market capitalizations below AU$309m, reported a median total CEO compensation of AU$439k. In other words, Advance ZincTek pays its CEO lower than the industry median. Furthermore, Geoff Acton directly owns AU$803k worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 75% of total compensation out of all the companies we analyzed, while other remuneration made up 25% of the pie. Advance ZincTek has gone down a largely traditional route, paying Geoff Acton a high salary, giving it preference over non-salary benefits. 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.

A Look at Advance ZincTek Limited's Growth Numbers

Over the last three years, Advance ZincTek Limited has shrunk its earnings per share by 18% per year. Its revenue is up 22% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Advance ZincTek Limited Been A Good Investment?

The return of -45% over three years would not have pleased Advance ZincTek Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Advance ZincTek pays its CEO a majority of compensation through a salary. The fact that shareholders have earned a negative share price return is certainly disconcerting. The fact that earnings growth has gone backwards could be a factor for the downward trend in the share price. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Advance ZincTek (1 is potentially serious!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.