We Think Shareholders Will Probably Be Generous With Azure Minerals Limited's (ASX:AZS) CEO Compensation

The performance at Azure Minerals Limited (ASX:AZS) has been quite strong recently and CEO Tony Rovira has played a role in it. Coming up to the next AGM on 23 November 2021, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Azure Minerals

How Does Total Compensation For Tony Rovira Compare With Other Companies In The Industry?

Our data indicates that Azure Minerals Limited has a market capitalization of AU$125m, and total annual CEO compensation was reported as AU$410k for the year to June 2021. That's a notable decrease of 13% on last year. We note that the salary portion, which stands at AU$384.8k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under AU$272m, the reported median total CEO compensation was AU$350k. This suggests that Azure Minerals remunerates its CEO largely in line with the industry average. Furthermore, Tony Rovira directly owns AU$610k worth of shares in the company.

Component	2021	2020	Proportion (2021)
Salary	AU$385k	AU$387k	94%
Other	AU$25k	AU$83k	6%
Total Compensation	AU$410k	AU$470k	100%

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. According to our research, Azure Minerals has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Azure Minerals Limited's Growth Numbers

Azure Minerals Limited has seen its earnings per share (EPS) increase by 22% a year over the past three years. Its revenue is down 51% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Azure Minerals Limited Been A Good Investment?

We think that the total shareholder return of 119%, over three years, would leave most Azure Minerals Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 5 warning signs for Azure Minerals (2 don't sit too well with us!) that you should be aware of before investing here.

Switching gears from Azure Minerals, 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.

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.

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