How Much Is Australian Potash Limited (ASX:APC) CEO Getting Paid?

Matt Shackleton has been the CEO of Australian Potash Limited (ASX:APC) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Australian Potash pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Australian Potash

Comparing Australian Potash Limited's CEO Compensation With the industry

According to our data, Australian Potash Limited has a market capitalization of AU$97m, and paid its CEO total annual compensation worth AU$299k over the year to June 2020. We note that's a decrease of 15% compared to last year. In particular, the salary of AU$272.8k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under AU$254m, the reported median total CEO compensation was AU$310k. This suggests that Australian Potash remunerates its CEO largely in line with the industry average. Moreover, Matt Shackleton also holds AU$1.3m worth of Australian Potash stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 68% of total compensation represents salary, while the remainder of 32% is other remuneration. Australian Potash pays out 91% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Australian Potash Limited's Growth Numbers

Australian Potash Limited has seen its earnings per share (EPS) increase by 97% a year over the past three years. Its revenue is up 8,877% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Australian Potash Limited Been A Good Investment?

Most shareholders would probably be pleased with Australian Potash Limited for providing a total return of 69% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As we noted earlier, Australian Potash pays its CEO in line with similar-sized companies belonging to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. So one could argue that CEO compensation is quite modest, if you consider company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 2 which are potentially serious) in Australian Potash we think you should know about.

Important note: Australian Potash is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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