Is Anson Resources Limited's (ASX:ASN) CEO Salary Justified?

Bruce Richardson became the CEO of Anson Resources Limited (ASX:ASN) in 2009. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Anson Resources

How Does Bruce Richardson's Compensation Compare With Similar Sized Companies?

According to our data, Anson Resources Limited has a market capitalization of AU$38m, and pays its CEO total annual compensation worth AU$558k. (This figure is for the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$300k. We examined a group of similar sized companies, with market capitalizations of below AU$282m. The median CEO total compensation in that group is AU$354k.

As you can see, Bruce Richardson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Anson Resources Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Anson Resources has changed from year to year.

Is Anson Resources Limited Growing?

Anson Resources Limited has reduced its earnings per share by an average of 8.6% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -183%.

Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Anson Resources Limited Been A Good Investment?

Boasting a total shareholder return of 381% over three years, Anson Resources Limited has done well by shareholders. 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.

In Summary...

We examined the amount Anson Resources Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

But clearly there are some positives, because investors have done well over the same time frame. Considering this, shareholders are probably not too worried about the CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Anson Resources shares (free trial).

If you want to buy a stock that is better than Anson Resources, this freelist of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.